The Chancellor is set to deliver the Autumn Budget 2025 on 26 November, and this one is shaping up to be significant. With the government facing ongoing fiscal challenges, we may see further tax rises aimed at tackling the public finance deficit.
Before we look ahead, it’s worth remembering that several measures announced in the Autumn Budget 2024 haven’t yet taken full effect — and they’ll continue to shape the financial landscape for individuals and businesses alike.
Key Measures Still to Come from Autumn Budget 2024
Capital Gains Tax (CGT)
We’ve already seen increases to CGT rates from 30 October 2024 and 6 April 2025, but there’s more on the horizon.
From 6 April 2026, the CGT rate under Business Asset Disposal Relief (BADR) is set to rise from 14% to 18%, further increasing the tax burden for business owners selling qualifying assets.
Inheritance Tax (IHT)
The previous Budget also outlined major changes to IHT, including:
These changes mean estate and succession planning will become even more important over the next few years.
What’s Unlikely to Change
Labour’s 2024 manifesto promised no rises in National Insurance, Income Tax, or VAT rates — and for now, that commitment still stands.
The Corporate Tax Roadmap (October 2024) also confirmed:
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The 25% main rate of Corporation Tax will remain.
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The small profits rate and marginal relief will be retained.
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The £1 million annual investment allowance and permanent full expensing will continue.
However, despite earlier promises to unfreeze thresholds, it now looks like Income Tax and IHT thresholds will stay frozen until 5 April 2030, extending the period of ‘fiscal drag’ for taxpayers.
What Could Change
While the government has made some clear commitments, there are several areas where we could see new announcements or reforms.
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National Insurance Contributions (NICs): The scope could be widened to include landlords, bringing parity with those running trading businesses.
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Pension tax relief: Currently given at the saver’s marginal rate (20%, 40%, or 45%), this could be capped at a flat rate — potentially around 30%.
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Salary sacrifice schemes: Employer pension contributions made via salary sacrifice may lose their exemption from Benefit in Kind rules, making them subject to NICs and Income Tax.
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Capital Gains Tax alignment: CGT rates (18% or 24%) could be aligned with Income Tax bands, meaning rates could reach as high as 45%.
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Inheritance Tax: Further restrictions to IHT reliefs or limits on lifetime gifting exemptions may be introduced.
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VAT registration threshold: Currently £90,000, this could be lowered or even abolished, bringing more small businesses into the VAT system.
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VAT on domestic fuel: There are rumours this could be reduced to 0% from its current 5% rate to ease cost-of-living pressures.
What This Means for You
While no one can predict the exact contents of the Autumn Budget 2025, the direction of travel is clear — the tax landscape is tightening, and preparation is key.
At A&C Chartered Accountants, we’re already working with clients to plan ahead, assess potential impacts, and identify strategies to remain tax-efficient and compliant.
If you’d like to discuss how any of these potential changes might affect your business or personal finances, get in touch — we’d be happy to help you stay one step ahead.