With the Autumn Budget scheduled for 26 November 2025, attention is turning to what changes the Chancellor might make to raise additional revenue, and how individuals and businesses can prepare.
Although headline increases to income tax, National Insurance and VAT have been ruled out, the government still needs to close a £20–30 billion gap. That leaves the door open for so-called “stealth taxes”, incremental freezes and adjustments that quietly increase tax receipts over time.
Below, we explore the main areas under speculation and outline practical steps you might take ahead of the Budget.
Property and Housing
The property sector is attracting particular attention this year. Several reports suggest that Stamp Duty Land Tax (SDLT) could be reformed or replaced with a value-based property tax aimed at higher-value homes.
Other possible measures include:
- A review of Inheritance Tax (IHT) reliefs such as the residence nil-rate band.
- Higher charges for second homes and buy-to-let properties, either through SDLT or Capital Gains Tax (CGT) changes.
With parts of the housing market already slowing, some buyers and sellers may be delaying transactions until after the Budget. However, if property measures take effect immediately on Budget day, early planning will be crucial.
Wealth and High Earners
Higher earners and business partners may also be under the microscope. The government could revisit how Limited Liability Partnership (LLP) members are taxed compared with employees, tightening existing partnership rules or removing certain structuring advantages.
There is also speculation about reforms to dividend taxation and pension tax relief. A shift to a flat-rate system, for instance around 30 per cent relief for all taxpayers, has been widely discussed.
If you are a higher-rate taxpayer, topping up your pension before the Budget could help lock in the current rate of relief. Our team can check your available allowance from the past three years and confirm the maximum contribution you can make without exceeding limits.
Capital Gains and “Stealth” Adjustments
CGT remains firmly in the spotlight. Aligning CGT rates with income tax would almost double the tax on certain disposals, from 20 per cent to as much as 40 or 45 per cent. Reducing the CGT annual exemption or restricting Business Asset Disposal Relief are also being discussed.
If you are considering selling investments, shares or property, review the timing of disposals now. Acting before the Budget could mean a significantly lower tax bill.
Similarly, allowances such as ISAs and savings thresholds may be frozen rather than cut, which has the same effect over time as inflation erodes their value.
Dividend Timing and Company Planning
For directors and business owners, dividend timing is another key area to review. If higher dividend tax rates or allowance reductions are announced, taking available profits before the Budget could make sense.
We can help you model different dividend scenarios and ensure any distributions fit within your wider business and personal tax planning strategy.
The Fiscal Backdrop
Public finances remain under pressure, with borrowing high and economic growth subdued. While major rate rises may be politically unpalatable, freezes and threshold changes could pull more taxpayers into higher bands, the hallmark of a stealth tax.
For clients managing high-value property, planning asset disposals, or overseeing significant investment portfolios, this backdrop makes a pre-Budget review especially valuable.
What to Do Now
Now is the time to:
- Review pension contributions to secure higher-rate relief while it lasts.
- Assess dividend timing to avoid post-Budget rate changes.
- Consider CGT exposure and bring forward disposals where appropriate.
- Use your current allowances, including ISAs, savings reliefs and capital gains exemptions.
A short discussion before November could make a real difference to your post-Budget position.
Take Advice Before Making Changes
It’s important to remember that these proposals are still speculative. Acting on rumour can lead to unintended tax consequences, particularly where timing and interaction with other reliefs are involved.
If you’re considering a disposal, pension contribution, or business restructuring before the Budget, please get in touch with The MGroup. We can help you assess your position, model potential outcomes, and ensure any action taken fits your long-term financial and tax plan.
If you think a business colleague or family member would benefit from this insight, please feel free to share it with them.