What to Expect in the Autumn Budget 2025

The Autumn Budget 2025, due on 26 November, will be closely watched. The Chancellor, Rachel Reeves, must balance tight public finances, slow growth, and political promises. Here are the key areas that may be addressed — and how we at Apex Accountants can help you prepare for the expected tax changes in autumn budget in UK.

Fiscal Context & Constraints

• The government faces a shortfall of £20 billion to £30 billion in revenue due to weaker growth and higher interest costs.
• The Chancellor aims to build a “buffer” (or fiscal headroom) to insulate against shocks in bond markets and maintain credibility with the Office for Budget Responsibility (OBR).
• Labour’s manifesto included pledges not to raise income tax, VAT, or national insurance — so revenue must be found elsewhere.

Likely Tax & Policy Measures

Analysts predict the government will announce the following Autumn Budget predictions:

1. Property & Housing Taxes

• The government may replace stamp duty with a new annual property tax or transaction tax for higher-value homes. 
• A National Insurance levy on rental income (e.g. 8 %) is under discussion.
• Council tax reform or a revaluation could also feature.

2. Capital Gains, Inheritance & Wealth Taxes

• The Chancellor may look closely at Capital Gains Tax (CGT) changes, including potential removal of exemptions on primary residences.
• Inheritance tax (IHT) reform is also probable. The seven-year gift rule may be tightened.
• The government might consider introducing wealth taxes or levies on financial assets.

3. Freezing or Adjustment of Tax Bands (Fiscal Drag)

• A freeze on income tax thresholds is likely. That would raise revenue through “fiscal drag” as wages rise.
• Similarly, moving thresholds in national insurance or benefit tapering could generate extra revenue.

4. Business & Entrepreneur Incentives

• To support growth, the Budget may include tax incentives for innovation, such as enhanced R&D credits or better terms for intellectual property.
• Revisions to Enterprise Management Incentives (EMI) or equity-based schemes are possible.

5. Sin Taxes, Gambling & Windfall Levies

• A reform of gambling taxes is under consideration. A simplified rate or increased levy could yield billions. 
• The government may introduce a windfall tax on banking profits or financial institutions.
• Officials could also adjust ‘sin taxes’ on alcohol, sugar, or unhealthy foods.

6. Spending Cuts & Efficiency Measures

• Some public spending cuts or efficiencies are likely in less politically sensitive areas.
• Measures targeting welfare, benefit uprating or eligibility may feature.

Risks & Challenges

• If taxes hit productive activity, growth could weaken further. 
• Breaking manifesto promises (e.g. raising income tax) would be politically risky.
  
• Tax changes often require lead time; transitional reliefs or grandfathering will be crucial for business planning.
• Data revisions by OBR or ONS may force last-minute adjustments in forecasts.

What You Should Do Now

1. Review exposure to property and capital gains

If you hold high-value property or potential gains, consider whether ahead-of-time structuring or timing changes may help.

2. Plan for cashflow impact

Freezes or levies may raise your future tax bills gradually. Budget for this.

3. Optimise business incentives

Review your R&D, EMI, IP or investment plans to be ready to benefit from any enhancements.

4. Seek professional advice early

Because legislation may change, early input helps guard against surprise costs.

How Apex Accountants Can Help You With Expected Tax Changes in Autumn Budget 2025 in UK

• Forecasting & modelling: We can simulate proposed Budget options on your financials.
• Tax planning: We will identify strategies to mitigate impact — especially in property, gains, and business tax.
• Structuring and implementation: Our experts help with executing changes, transitional reliefs, and compliance.
• Staying updated: We will monitor the final statutory texts and advise promptly.

If you’d like a tailored briefing for your sector (property, corporate, high net worth) or a meeting to plan your position ahead of the Budget, we at Apex Accountants would be happy to assist.

FAQs Related to Autumn Budget Predictions

1. When is the Autumn Budget 2025?

It is scheduled for 26 November 2025, led by Chancellor Rachel Reeves.

2. Why is this Budget important

 It will outline Labour’s first full fiscal plan, balancing growth, tax reform, and spending control.

3. Will taxes increase in 2025?

Most experts expect targeted tax rises, mainly in property, capital gains, and wealth-related areas.

4. Could income tax or VAT go up?

Unlikely. Labour pledged not to raise income tax, VAT, or National Insurance, so other areas will be used to raise funds.

5. What new taxes are being discussed?

Potential options include a property levy, wealth tax, or National Insurance on rental income.

6. Are Capital Gains Tax or Inheritance Tax changing?

Possible. CGT reliefs and the seven-year inheritance gift rule may be reviewed.

7. What about business support?

The Chancellor may expand R&D incentives, investment allowances, and green energy funding.

8. How will pensions be affected?

Changes to tax-free pension cash or higher-rate relief could be introduced.

9. What should landlords prepare for?

Landlords should expect tighter rules — possibly NIC on rental income and reduced reliefs.

10. Will motorists see changes?

Car tax bands, electric vehicle incincentives, and fuel duty freezes are all under review. review.

11. Could there be new wealth or asset taxes?

Yes, analysts expect measures on luxury assets, investment portfolios, and possibly second homes.

12. What’s expected for small businesses?

Support for digital reporting, energy efficiency, and VAT simplification may feature.

13. How big is the UK’s budget deficit?

Estimates place it between £30 and £50 billion, prompting pressure for revenue-raising measures.

14. Will the government cut public spending?

It may reduce some non-essential areas to create fiscal headroom.

15. How can Apex Accountants help before the Budget?

We offer pre-Budget tax reviews, forecasting, and sector-specific planning to help individuals and businesses prepare for any new tax measures.