The Autumn Budget 2025: What Potential Tax Changes Could Mean for You - Chapmans Business Solutions

Chancellor Rachel Reeves has announced that the Government’s Autumn Budget will take place on 26th November 2025. As the nation faces growing economic pressures and a significant public finance gap, speculation about potential tax reforms is increasing. Here’s what individuals and businesses might need to consider ahead of the Budget.

1. Inheritance Tax (IHT)

There are talks of introducing a lifetime cap on tax-free gifts, potentially between £100,000 and £200,000. If implemented, this could result in significant IHT liabilities for heirs who receive gifts exceeding these limits.

2. ISAs

The Government may consider limiting the cash portion of the £20,000 annual ISA allowance, encouraging savers to invest rather than hold cash. This could impact long-term savings strategies.

3. Property Taxes

Several proposals are under discussion for property owners, including:

Replacing stamp duty and council tax with a single annual property tax.
Introducing higher council tax bands for expensive properties.
Extending Capital Gains Tax (CGT) to main residences sold above a certain threshold.

4. Income Tax

Labour has pledged not to raise income tax, National Insurance, or VAT directly. However, extending thefreeze on tax thresholds could effectively increase tax bills for some, as more individuals are pulled into higher tax brackets – a so-called “stealth tax.”

5. Capital Gains Tax (CGT)

Changes to CGT could include reduced allowances or higher rates. Currently, CGT stands at 18% for basic rate taxpayers and 24% for higher rate taxpayers.

6. Dividend Tax

The tax-free dividend allowance has already fallen from £2,000 to £500 and further reductions are possible. Dividends held within ISAs, however, remain tax-free.

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7. Wealth Tax

Some Labour members advocate a new wealth tax for individuals with assets above £5-10 million. Critics warn that such a move could incentivise wealthy individuals to leave the UK.

8. Pensions

Potential reforms may include limiting salary sacrifice schemes and altering pension tax relief, which could affect retirement planning for many individuals.

What This Means for You
While nothing is confirmed yet, it’s important to start considering how these potential changes could impact your finances and investments. From inheritance planning and ISAs to property and pensions, early preparation can make a significant difference.

At Chapman’s Business Solutions, we specialise in helping individuals and businesses navigate complex financial decisions. Our expert advisors can help you plan strategically for potential tax changes, ensuring you stay one step ahead.

Stay informed, stay prepared and make the Autumn Budget work for you. Drop us a line at office@cbsltd.org or call us directly on 01775 529345.