Key Tax Topics Likely to Feature in the Autumn Budget

Date: November 10, 2025

According to recent news and speculation by political and financial analysts, the 2025 Autumn Budget is expected to include many tax increases. These are likely to include Income Tax, National Insurance, Capital Gains and Inheritance Tax. Changes to Pensions, ISAs, and a range of property and business taxes are also likely to feature. These key areas likely to feature in the 2025 Autumn Budget could significantly influence tax liabilities and future tax planning for businesses and individuals alike.

This article highlights what we know so far, in terms of confirmations and speculations, ahead of the Autumn budget on November 26th. For a broader overview of recent developments, see our Autumn Budget 2025: Tax Rises article.

Income and National Insurance in the 2025 Autumn Budget

There has been a lot of speculation regarding changing National Insurance and Income Tax, despite an election pledge not to do so. The Resolution Foundation recommended just this. The UK media has also widely reported that the Office for Budget Responsibility (OBR) has been asked to model or review possible changes to income tax and National Insurance. This was also mentioned in a House of Lords debate.

What are the expected/rumoured changes to Income Tax in Autumn Budget 2025?

Firstly, it is highly likely that the tax-free thresholds will be frozen for yet another year. This means that over time, more people will pay more tax.

There are also strong rumblings that income tax may increase by 1 to 2 pence in the pound. Though as of November 14th there are rumours that this will now likely be scrapped in the upcoming budget.

What are the expected/rumoured changes to National Insurance?

There has been speculation that national insurance may be levied on property income. Other discussions centre on the fact that national insurance will decrease by 2 pence in the pound at the same time income tax is increased by the same amount. We believe this is more likely. It will increase taxes more significantly for certain groups, including pensioners and those with personal property income.

For more guidance on personal tax planning, visit our personal tax services page.

Capital Gains, Dividends & Inheritance Tax

Capital Gains, Dividends, and Inheritance Tax are expected to feature due to ongoing debates over wealth distribution. Individuals are closely monitoring potential reforms that could influence long-term tax planning.

What are the expected/rumoured changes to Capital Gains Tax?

The annual CGT exemption has been cut sharply in recent years and now stands at just £3,000, with concerns it could be eliminated.

Taxpayers currently pay between 18% and 24% on gains from residential property above this allowance, depending on the size of the gain.

The Office of Tax Simplification (OTS) has recommended bringing CGT rates more in line with Income Tax. If adopted, some sellers of investment property or second homes could face effective rates of 40% to 45% on property gains.

What are the expected/rumoured changes to Dividend Tax?

Commentary suggests the allowance could be reduced from £500 (maybe even towards zero), thereby increasing the number of people paying dividend tax. There is also speculation that the rates could be increased to align dividend income more closely with other forms of income tax and to raise additional revenue.

What are the expected/rumoured changes to Inheritance Tax in the Autumn Budget 2025?

Inheritance tax is likely to remain a key focus for the Chancellor. Changes that could significantly alter the way families pass on wealth.

There are rumours the Chancellor might extend the seven-year gifting rule to ten years and introduce a lifetime cap on tax-free gifts. Such measures would require urgent inheritance tax planning.

Freezing the inheritance tax thresholds for another year is highly likely and would gradually push more families into the IHT net. With rising house prices and inflation, it could add an extra £5,000 to £10,000 in tax for the average estate.

For detailed advice, visit our inheritance tax and capital gains tax services.

Pensions & ISAs

Pensions and ISAs are expected to feature in the budget as the government looks to increase tax revenue. Proposed changes could affect contribution limits, tax relief, and withdrawal rules.

What are the expected/rumoured changes to Pensions?

Several potential tax changes are understood to be discussed at present. These include reducing salary sacrifice benefits, cutting the tax-free lump sum, and reforming pension tax relief.

Autumn Budget 2025 – what are the expected/rumoured changes to ISA allowances?

At the 2024 Budget, it was expected that ISA limits would be cut, but this didn’t materialise. Current analysis is that this is much more likely to be introduced now. More recent commentary expects the Annual ISA limit to be reduced from £20,000 to £12,000 (although £10,000 was also recently discussed).

Property, Wealth and Exit Taxes

Property, wealth, and exit taxes are increasingly expected in the budget. These measures could particularly affect property owners, landlords, and those considering relocation overseas.

What are the expected/rumoured changes to Property Tax?

Potential reforms include higher Council Tax bands, property revaluations, and targeted levies on high-value homes. There are also rumours of National Insurance being applied to property income, although an increase in the basic rate of tax is possibly more likely now.

What are the expected/rumoured changes to Wealth Tax in the Autumn Budget 2025?

While a broad wealth tax is unlikely to be introduced immediately, targeted levies on high-value assets or changes to existing taxes may be considered. Even a limit on Private Residence Relief for high-value main residences has been widely discussed.

What are the expected/rumoured changes to Exit Taxes?

An exit tax on individuals leaving the UK could be introduced, potentially taxing unrealised gains on certain assets to prevent avoidance of Capital Gains Tax. Should such a measure be introduced, it is likely to be brought in quickly to avoid pre-emptive departures.

Business Taxes & Autumn Budget 2025

Business Taxes are anticipated to feature prominently. There is speculation that Limited Liability Partnership (LLP) partners becoming subject to employer NI contributions. currently this is largely avoided.