Kirk Rice Blog

Autumn Budget 2025 – What Could Be on the Horizon?Written on October 7, 2025 by Michael Powell

Key Points

• The next UK Autumn Budget 2025 will take place on Wednesday, 26 November 2025. 
• Major tax rates — including Income Tax, National Insurance and VAT — are expected to remain unchanged. 
• Key measures from previous Budgets, such as future Capital Gains Tax and Inheritance Tax changes, are still due to take effect. 
• Our Financial Planning Partner Michael Powell speculates – might include flat-rate pension tax relief or closer alignment of CGT and Income Tax rates. And what of Stamp Duty?
• While much remains uncertain, understanding the existing changes yet still to be effective, helps individuals and business owners prepare ahead of time. 

When is the UK Autumn Budget 2025?

Rachel Reeves’ next UK Budget will take place on Wednesday, 26 November 2025. With government finances still under pressure, and several previously announced tax changes yet to come into force, attention is already turning to what changes the Autumn Budget 2025 might include.

While Labour’s manifesto commitments mean headline tax rates are unlikely to shift, the Chancellor may still look for more subtle ways to raise revenue or reshape incentives. 

Budget changes already in motion

Several measures announced in earlier Budgets are still scheduled for future years. These include: 

• Inheritance Tax (IHT): The scope of relief for business and agricultural property will be reduced from April 2026. As of April 2027, estates will also include unused pension funds and death benefits. Learn more about our Inheritance Tax advice. Learn more about our Inheritance Tax advice.
• Capital Gains Tax (CGT): The Business Asset Disposal Relief rate (BADR) will rise 4%, from 14% to 18% (6th April 2026). For more information, see our page on Tax Compliance and Planning. 

These delayed measures are already influencing tax planning and succession strategies for many individuals and business owners. 

Budget areas expected to stay the same

In their 2024 manifesto the Labour party stated that there would be no increases to: 

• Income Tax rates (basic, higher or additional)
• National Insurance 
• VAT 

The October 2024 Corporate Tax Roadmap also confirmed: 

• The main Corporation Tax rate stays at 25%. 
• The Annual Investment Allowance (£1m) and full expensing rules will stay in place. 

While the overall rate picture appears stable, ongoing freezes to tax thresholds until April 2028 mean more people will gradually move into higher tax bands — a quiet but effective way to increase receipts. 

The Budget long shots

Every Budget brings a few speculative ideas that grab attention but rarely make it into law. This year’s “long shots” include: 

• ‘VAT creep’ – extending VAT to areas currently exempt, such as financial and mortgage advice; buying gold; funeral plans and cremation. Some goods like books, magazines and maps are still exempt. 
• Despite earlier debate, new VAT charges on private healthcare appear very unlikely. Private schools have already been targeted, and the government has pledged not to raise the VAT rate itself. 
• Business rates reform – abolishing hated rates could be a winner for the High St and would not affect overall tax revenues. Corporation and income taxation could rise more because of increased profitability.  
• Stamp Duty is rumoured to be changed and replaced with a new annual property tax presumably diverted away from local councils into central government. Removing Stamp Duty on residential property is likely to stimulate a lot of house moves which is great for VAT revenue on the professional services needed. Agents would be more profitable and pay corporation tax. 
• Limiting the Capital Giants Tax exemption for an individual’s main residence has also been rumoured but might recoup the loss of Stamp Duty if both measures were in place.  

Potential Budget policy shifts

Among the more credible possibilities under discussion are: 

• Capping pension tax relief at a flat rate (around 30%)
  Simplifying pension tax relief could align incentives and limit benefits for higher earners. 
• Aligning CGT with Income Tax rates
  A long-discussed reform favoured by many Labour advisers framed as simplification, would increase CGT rates for higher-rate taxpayers ‘bringing parity between work and investment’. 
• Further IHT restrictions
  Building on confirmed changes, the Chancellor could consider limits on exempt lifetime gifting or adjustments to the nil-rate band structure.  

Looking ahead: after the Budget

Until the Chancellor stands up on 26 November, all of this remains speculation.
However, making sure you have taken into account all the recent changes and keeping an eye on the Autumn Budget 2025 helps individuals and business owners prepare — whether that means reviewing pension and ISA contributions; succession plans; asset disposal; reassessing estate-planning strategies. 

For more information on personal financial planning, visit our Financial Planning services page.
Kirk Rice will also publish a detailed summary once the Budget is announced, explaining confirmed measures and their practical implications. 

For personalised advice on how future tax changes could affect you, contact us at info@kirkrice.co.uk or via our online form: https://www.kirkrice.co.uk/contact/

Please note: This article is correct as at the publication date. The answers are given for general guidance only and specific advice should be taken before acting on any of the suggestions made. The information is based on current tax legislation which may change in future. Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of relief from taxation are subject to change. The Financial Conduct Authority does not regulate tax planning.