Autumn Budget 2025 – the latest rumours
Overview
The Chancellor has now set the Autumn Budget 2025 date, almost a month later than last year, for Wednesday 26 November.
Current reports are that tax policy will play a central role in this Budget, with the government facing pressure to balance growth with fiscal responsibility.
What are the rumoured tax changes?
While no formal announcements have been made, there are several rumours gaining traction around possible tax changes.
1. Potential lifetime cap on inheritance tax (IHT) gifting
There is growing speculation that the government may introduce a lifetime cap on IHT free gifts, which would be a significant change from the current system where gifts made more than seven years before death are exempt from IHT regardless of the amount. If introduced, this could fundamentally alter intergenerational wealth transfer strategies. That said, the government had indicated that lifetime planning may help mitigate the impact of new restrictions on agricultural and business property reliefs, which would contradict this proposal.
2. Wealth tax
There has also been renewed discussion of a possible wealth tax. This could take the form of an annual levy on individuals with assets above a certain threshold. Implementing such a tax would pose significant administrative challenges, particularly around asset valuation and compliance and, although it cannot be ruled out entirely, it is looking less likely as a policy change for the upcoming Budget.
3. Property tax reform
There are a raft of rumours circulating around possible changes to property taxes.
These include:
• introducing NIC on rental income for private landlords;
• subjecting people’s main home to capital gains tax (above a certain value);
• replacing stamp duty land tax with a seller-paid levy;
• scrapping council tax and replace with an annual property-based tax levy.
All of these proposals could significantly impact the housing market including high-net worth individuals looking to leave the UK, as well as creating a stagnant market with older homeowners not selling to avoid paying taxes, albeit the introduction of NIC on rental income could cause many landlords to sell up, or pass on these additional costs to tenants.
4. Income tax threshold freeze
Headline income tax rates are unlikely to change with pledges to stand by the Labour manifesto promises of not increasing income tax, VAT or national insurance on employees. We are therefore more likely to see a freeze on income tax thresholds beyond the previously announced date of April 2028. This is effectively a stealth tax as more individuals are pushed into higher tax bands as incomes rise without a direct increase in tax rates.
What could this mean for you?
As mentioned, the above proposals are all speculative and nothing has been confirmed by the government as yet. We would, therefore, advise caution in terms of making decisions or carrying out planning in advance of the Budget purely motivated by tax.
If you are already considering changes for commercial reasons, it may be beneficial to act before the Autumn Budget. For example, if you are planning to gift business assets ahead of the April 2026 reforms to IHT (which will restrict agricultural and business property reliefs), taking action before the Autumn Budget could provide greater certainty over current reliefs as well as starting the seven-year clock sooner, potentially reducing future tax exposure.
Hazlewoods coverage of the Autumn Budget 2025
On the day of the Budget, we will publish a summary of the key announcements on our website in real time, during the Chancellor’s speech.
Later that day, we will publish in depth articles on the key tax changes most relevant to our clients. Sign up here to stay up to date with our Budget commentary.
How we can help
If you would like to discuss how these rumoured changes might affect you or your business in advance of the Budget, please do get in touch.