The Chancellor will deliver the Autumn Budget on the 26th November 2025. This year’s announcements are expected to focus on tackling the public finance deficit, which could mean further tax rises. 

Before looking ahead, it’s worth remembering that some of the measures from the Autumn Budget 2024 are still to come. Capital Gains Tax (CGT) has already risen, and from April 2026, the rate for Business Asset Disposal Relief will increase again from 14% to 18%. Inheritance Tax (IHT) changes are also on the horizon, with restrictions on 100% relief for business and agricultural property from April 2026. A year later, from April 2027, unused pension funds and death benefits will also be included in estates for IHT purposes. 

Now, let’s look ahead to what could potentially be announced in this year’s Autumn Budget. 

What’s unlikely to change? 

Labour’s 2024 manifesto promised no increases to National Insurance, Income Tax rates or VAT, and the government’s Corporate Tax Roadmap confirmed the 25% main rate of Corporation Tax would stay in place. The small profits rate and marginal relief will also remain, as will the £1 million annual investment allowance for plant and machinery and the system of permanent full expensing. 

Although ministers previously suggested that keeping Income Tax thresholds frozen would hurt working people, it now seems almost certain that the freeze will be extended until April 2030. This mirrors the same timeframe already applied to IHT thresholds. 

What could change? 

Among the possibilities being discussed are: 

• National Insurance (NICs): Landlords may be brought into the NIC system, putting them on the same footing as trading businesses. 

• Pension tax relief: At present, relief matches your tax band (20%, 40% or 45%). A cap could be introduced – for example, a flat rate of 30%. 

• Salary sacrifice for pensions: Employer pension contributions made through salary sacrifice are currently exempt from Benefit in Kind rules. Removing the exemption would make them subject to Income Tax and NICs. 

• Capital Gains Tax (CGT): Rates could be aligned with Income Tax, which would mean potential rises to as much as 45% for higher earners. 

• Inheritance Tax (IHT): There may be tighter limits on reliefs, such as restrictions on lifetime gifting. 

• VAT threshold: The £90,000 registration threshold could be lowered or abolished. 

• VAT on domestic fuel: Currently charged at 5%, this could be reduced to 0% as part of efforts to ease the cost-of-living crisis. 

Looking ahead 

The details won’t be confirmed until November 26th, but reviewing the possible changes now can help you prepare. If you’d like to discuss how any of these measures might affect you or your business, please get in touch, we’d be happy to help.