Autumn Budget 2025 Tax Rises Loom

Date: November 4, 2025

Chancellor Rachel Reeves is under increasing pressure to introduce further tax increases in the 2025 Autumn Budget, which has now been confirmed for 26 November 2025. Today, the chancellor delivered an unusual pre-budget speech. This follows recent fiscal reversals and mounting public spending commitments.

With fiscal headwinds mounting and lower-than-expected growth, many analysts now see tax rises as almost inevitable, and the Chancellor herself has confirmed tax rises will follow in the budget on 26 November. This article explores the leading tax measures under consideration for the 2025 Autumn Budget.

Published by Alexander & Co | Expert Chartered Accountants and Tax Advisors

Why Tax Rises Are Now Widely Foreseen

The government is reportedly facing a £20 – 30 billion fiscal gap, owing to weaker productivity, rising debt interest costs, and higher public spending. Earlier welfare cuts and benefit reversals (worth around £5 billion) have eroded some fiscal margin, reducing flexibility. As headline increases in Income Tax, National Insurance or VAT are politically constrained by Labour pledges, “stealth” and targeted tax changes are now at the forefront.

Welfare U-turns fuel pressure for Autumn Budget 2025 tax rises

After reversing planned disability and pensioner benefit cuts earlier this year, which mainstream sources estimate to be worth an estimated £5 billion, Reeves is now working with an estimated narrowed fiscal margin. Both the Institute for Fiscal Studies and the Treasury warn that, unless economic indicators improve, further tax rises in the Autumn 2025 are likely to be inevitable.

Freeze on income tax thresholds – hidden tax rises

Though Chancellor Reeves has pledged no further NI hikes, one route is through freezing income tax thresholds for longer. Previously signalled in Treasury reports, such freezes effectively raise income tax revenue by pushing more taxpayers into higher-rate bands. Early forecasts suggest extending this freeze through 2030 could generate roughly £7 billion annually.

Other Autumn Budget 2025 tax hike candidates: ISA, pensions, inheritance, CGT

Multiple consultations are currently in progress with draft legislation likely to be finalised later this year:

Capital Gains Tax reforms, including April 2025 changes to Business Asset Disposal relief and carried interest reforms, extending to April 2026
Inheritance Tax on agricultural property, currently protested by farmers since November 2024, with a 20% levy on estates over £1 million from April 2026.
ISA and pension tax relief adjustments, hinted at the Spring Statement reviews, potentially cutting tax-free allowance for high earners.
Stamp duty loophole closures, such as AIM share relief, under parliamentary consultation.

Top Tax Change Speculations for November 2025

based on commentary by political analysts and other organisations, the following are the most speculated budget speculations:

Tax Area	Leading Speculations & Mechanisms	Potential Revenue / Impact	Notes & Caveats
Income Tax / NI / Fiscal Drag	Freeze tax thresholds (personal allowance, higher rate, etc.) beyond 2029, pushing more income into higher brackets.	£7–10 billion+ annually.	A “hidden tax rise” consistent with manifesto constraints.
National Insurance on Landlords / Rental Income	Bringing landlords into employee NI or introducing new NI surcharge on rental income.	Targeted to raise revenue from unearned income.	Landlord sector very sensitive; political opposition strong.
LLP / Partnership Taxation	New employer NI contributions or reclassification of profits from LLPs (e.g. lawyers, doctors, accountants).	£1–3 billion+ depending on design.	Similar proposals have floated in prior budgets.
Capital Gains Tax / Carried Interest / BADR	Tightening or abolishing reliefs, reducing principal residence exemption thresholds, reform to Business Asset Disposal Relief (BADR).	Multiple billions, especially affecting high-net-worth individuals.	Markets sensitive; timing and transition rules critical.
Inheritance Tax & Wealth Taxes	Reducing exemptions, limiting agricultural/business reliefs, introducing extra tax bands on high-value estates and properties.	Significant yield potential, especially from landowners and wealthy families.	Rural backlash likely; phasing is probable.
Pension Tax Relief Changes	Flattening relief (e.g. 20% flat rate), reducing the tax-free lump sum, lowering annual allowances.	Billions over time.	Very politically sensitive; some protective “grandfathering” likely.
ISA / Savings Rule Tweaks	Reducing cash ISA allowances or tightening rules on who can hold high balances tax‑free.	Moderate revenue gains; hits savers.	Could attract criticism from middle-income households.
Stamp Duty / Property Transaction Taxes	Closing loopholes (e.g. AIM share reliefs), adjusting rates on luxury homes, replacing stamp duty with annual property taxes or land taxes.	Revenue-raising and broader tax reform.	Complex to implement; significant public interest.
Windfall / Sector Levies	Additional surcharges on bank profits (beyond existing regime), higher digital services tax, environmental levies (flights, shipping).	Targeted but politically less visible.	Viable in areas already under scrutiny.

Timing: Autumn Budget 2025 tax rises are fast approaching

On 3 September 20025, the government confirmed that the Autumn Budget 2025 will be held on 26 November 2025. This is later than most commentators expected. It typically follows Prime Ministers Questions, and starts from around 12.30 pm. With that window fast approaching, both markets and the public await clarity on which taxes, including income, corporation, CGT, ISA and inheritance tax, could soon rise.

Implications for Individuals & Businesses

Households & Employees: A frozen tax allowance or fiscal drag increases bite even without nominal rate rises.

Landlords & Property Owners: New NI rules or transfers of property tax burdens can materially change cash flow and returns.

Professional LLPs / Partnerships: Changes to profit classification or NI could require structural reorganisations.

Those with Capital Assets: Accelerated CGT or loss of reliefs may push timing of disposals and restructurings.

Retirees & Savers: Pension relief changes and ISA tweaks may reduce effective returns or benefits.

What to look out for with Autumn Budget 2025 Tax Rises

Final legislation on CGT and carried interest will be published later this year.
Proposed legislation on the changes to Inheritance Tax (IHT) regarding agricultural relief and business property relief. This has been subject to consultation, but detailed legislation is yet to be published.
ISA and pensions relief adjustments, especially for higher earners.
Defence spending pressures if defence outlays hit 5% of GDP. Whilst not in time for the Autumn Budget 2025, Keir Starmer has mentioned tax rises post 2029.

Summary

With welfare U-turns and public service costs increasing, 26 November 2025 could bring a second wave of tax rises. These could be in the form of frozen thresholds, reformed CGT, tighter inheritance tax rules, and curtailed tax reliefs.

While the 26 November date has been confirmed, based on current commentary, expect stealth tax measures, wealth and property-focused changes, pension tweaks, and targeted surcharges, rather than sweeping rate increases across the board.

Alexander & Co’s clients can expect a full breakdown on household impact, business response, and legislative timelines. We will provide these as they are known as soon as possible after the November Budget.

Pre-emptive planning may be beneficial. Please contact Alexander & Co if you would like to discuss how we can assist.