Legal News | 13.11.25

Budget incoming!

With less than two weeks until the Autumn Budget (26 November), speculation continues to mount as to what changes will be announced. Against the backdrop of a weak economic outlook and increasing pressure on public finances, the Chancellor will face some tough decisions. Increasing taxes seems unavoidable given that the “world has changed” since Labour’s manifesto commitment “not to increase taxes on working people”.

Rumour has it!
There has been speculation regarding a number of tax changes, each with varying degrees of potential return for the Exchequer:

• Income Tax: as is often the case, the Chancellor may consider a further freeze on income tax thresholds until 2030 (an extension from the current freeze until 2028);
• Capital Gains Tax (CGT): suggested reforms range from removing the 100% relief when a person disposes of their principal private residence to increasing the rate of CGT payable on certain types of property;
• Inheritance Tax (IHT): there have been signals from HM Treasury that there may be further tightening of the UK’s IHT regime, with particular attention now turning to lifetime gifting. Proposals could include amendments to or the abolishment of the seven-year gifting rule. It has also been rumoured that officials are looking at possible alternatives to the new rules due to come into effect from April next year for Agricultural Property Relief and Business Property Relief, including the “minimum share rule” (proposed by CenTax in response to Government’s consultation) that would give full relief from IHT up to £5m per person (£10m for a married couple) where farm and business assets make up at least 60% of the total estate value;
• Wealth taxes: for several years, possible wealth taxes have been mooted, such as a 2% tax on those holding assets in excess of £10 million. The efficacy of wealth taxes, however, remains hotly disputed given the potential to discourage internationally mobile (and wealthy) individuals from moving to the UK;
• Property taxes: there have been rumours hinting at the full replacement of the current Stamp Duty Land Tax (SDLT) and Council Tax regimes (far beyond the scope of this article); and
• Exit taxes for those leaving the UK: given the shift to a solely residence-based regime for UK tax purposes and the impact this has had on those who consider themselves to be ‘domiciled’ outside the UK, exit taxes have been suggested for those now wishing to leave the UK. Much like wealth taxes, however, the efficacy of such taxes has been widely scrutinised.

All of the above are speculation only, and the rumour mill will keep rotating until the Chancellor delivers her Budget on 26 November. At Wansbroughs, we will be monitoring the developments closely. If you need advice as to your own position, speak to our Private Client team at wealth@wansbroughs.com.