Chancellor Rachel Reeves is making her Autumn Statement this November 2025 – and there's been plenty of speculation over what may or may not be in store.
And while they don't have a crystal ball, the experts from Crowe UK share their opinions on what businesses and individuals should prepare for.
Changes to Income Tax in the Autumn Budget 2025
The freeze on personal allowances and personal tax thresholds has been extended from April 2026 to 2028 – with rumours that it may be extended again until April 2030 – causing further fiscal drag and pulling more people into higher tax bands.
There may be options to reduce the impact – for example, with couples where one partner earns a higher salary than the other, switching capital between partners can help make the most of personal allowances and basic rate tax bands, reducing the overall amount of tax paid.
For retirees, the state pension continues to grow with the
triple lock and will soon exceed the personal tax allowance – meaning pensioners
in receipt of a full state pension with no other income will be liable for
income tax in the future.
Many are speculating that income tax rates will rise in the budget irrespective of manifesto pledges. If that is the case, the chancellor is likely to target increases on higher rate taxpayers and those in receipt of investment income, such as dividend, interest or rental income, perhaps with an associated compromise to workers by reducing employees' National Insurance.
Changes to Capital Gains Tax in the Autumn Budget 2025
It's predicted that Capital Gains Tax (CGT) could rise another four per cent, on top of last year's four per cent increase, taking it to 28 per cent.
If CGT continues to rise at a rate of four per cent per year, it could reach as high as 40 per cent by the end of the current parliament – bringing it in line with Income Tax.
The rate of CGT for business asset disposal relief is also going up from 14 per cent to 18 per cent from April 2026, so completing transactions and triggering gains before any new rates come into place would be worth considering.
Changes to Inheritance Tax in the Autumn Budget 2025
Ahead of upcoming changes to Inheritance Tax, those with trading businesses and farms could consider creating trusts and passing ownership onto the next generation, certainly before Sunday 5 April 2026, where impacted by the incoming £1 million cap on 100 per cent relief.
A trust pays a lower rate of IHT on every 10th anniversary of the original settlement, so instead of facing a lump sum on death, the liability can be spread more manageably over several decades.
For individuals, there are also rumours that the chancellor plans to extend the transfer period for potentially exempt transfers from seven to 10 years. So for gifts of cash or assets transferred to friends and family members, the donor would need to survive for longer in order for the value of those gifts to fall outside their estate for inheritance tax purposes. Therefore more significant gifts and asset transfers could be accelerated to before the budget.
Changes to savings and pensions in the Autumn Budget 2025
Crowe's financial planners say 'with a high degree of confidence' that income tax reliefs on pension conributions are unlikely to get better post-budget. There are rumours that the current marginal rate income tax relief for pension contributions (as up to 45 per cent) could be reduced to the basic rate of tax, or possibly a flat rate of 30 per cent. Crowe is therefore encouraging clients to make pension contributions before the budget where appropriate.
There's also an argument for anyone who has reached their lifetime allowance to take their 25 per cent tax-free cash from their pension pot now, to avoid any potential changes to the tax-free sum – however, at this stage, there's no guarantee that pension providers will be able to administer the funds in time.
There is also speculation that the cash ISA contribution allowance may be reduced from £20,000 to £4,000, too.
Changes to buy-to-let and LLP income in the Autumn Budget 2025
There has also been speculation over whether National Insurance contributions will be levied on rental and limited liability partnership (LLP) income. Currently, landlords do not pay National Insurance on their net income, so if this comes to pass, it may lead to rent hikes for tenants, or lead to more landlords selling off properties or restructuring their affairs.
Similarly, LLP members impacted by such a change may wish to find alternative business structures.
When is the Autumn Budget 2025
Rachel Reeves is delivering the Autumn Statement on Wednesday 26 November 2025, when all will be revealed.
Crowe is hosting a live event at Cheltenham Racecourse, as well as providing a post-budget debrief – for more information, visit crowe.com/uk/events.
To see how Crowe can help with tax planning ahead of the budget, visit crowe.com/uk, or contact Nick Latimer by emailing nick.latimer@crowe.co.uk or calling 01242 234421.
