The Chancellor delivers the Autumn Budget on 26 November 2025 – and if you’re expecting dramatic headlines about soaring tax rates, you’ll likely be disappointed.
But here’s what you need to know: Rachel Reeves doesn’t need to announce eye-catching tax hikes to significantly increase your tax bill. The government has quieter, more subtle tools at its disposal – and they could prove far more expensive for your business and family wealth.
Small changes to thresholds, reliefs and allowances can add up to thousands in extra tax over time. With the OBR expected to identify a fiscal shortfall of £20-50 billion, the businesses and families who act now, before the Budget, will be the ones who protect their wealth.
The Government’s Three-Point Challenge
Understanding why this Budget matters starts with understanding the pressure the Chancellor faces.
1. Tight public finances. Borrowing remains high and debt servicing costs are mounting. The government needs to find revenue from somewhere.
2. Manifesto promises matter. Labour committed not to raise income tax, National Insurance or VAT rates for working people. That rules out the three biggest revenue sources most governments rely on.
3. Inflation has done the heavy lifting. Rising wages and property values have already pushed more people into higher tax bands. This “fiscal drag” means tax revenues increase even without rate changes.
The result? A Budget that raises money through technical changes rather than headline-grabbing announcements.
Where the Changes Will Hit Your Pocket
Your Income Tax Bill Could Rise Without Rate Increases
The simplest move? Extend the freeze on income tax thresholds and allowances beyond their current end date.
What this means for you: As your salary increases, more of your income gets taxed at higher rates. A middle-income earner could pay thousands more over the next few years, even though the tax rates themselves don’t change.
Real example: If you earn £60,000 today, a threshold freeze could cost you an extra £2,000 annually by 2028 as wage inflation pushes more of your income into the 40% band.
Property Owners Face Multiple Targets
Your property portfolio is squarely in the government’s sights. Potential changes include:
• Council tax band revaluations
• Tighter capital gains tax reliefs on property sales
• New levies on high-value homes
• National Insurance on rental income – potentially reducing your net rental returns by 12%
What this means for your portfolio: If you’re a landlord with £50,000 annual rental income, National Insurance could cost you £6,000 per year in additional tax. The implementation would likely align with Making Tax Digital for income tax from 2026/27.
Family Wealth Planning Gets Harder
Inheritance Tax (IHT) reform is coming, building on last year’s changes that brought pensions into IHT from 2027 and reduced agricultural/business property relief.
The focus now will likely be on lifetime gifting rules. Currently, you can gift assets and avoid IHT if you survive seven years. Proposals could:
• Introduce lifetime gifting caps – limiting how much you can pass on tax-free before death
• Extend the seven-year survival period to 10+ years
• Reduce taper relief – currently gifts made 3+ years before death get reduced IHT rates
• Extend the threshold freeze – the £325,000 nil-rate band could stay frozen until 2030
What this means for your family: If you’re planning to gift £500,000 to your children, waiting could mean they receive significantly less after tax, especially if lifetime caps are introduced.
Your Pension Strategy Needs Urgent Review
Pensions remain an attractive target for tax changes:
• Flat-rate tax relief – reducing the advantage for higher-rate taxpayers
• Reduced or removed tax-free lump sum – the current 25% tax-free withdrawal could be cut or eliminated
• Pensions already confirmed for IHT from 2027 – unused pension pots will be subject to 40% inheritance tax
What this means for your retirement: If you’re a higher-rate taxpayer contributing £40,000 annually, flat-rate relief could cost you £8,000 per year in lost tax benefits. Losing the 25% tax-free lump sum on a £200,000 pension pot would cost you £50,000 in tax-free cash.
Why Small Changes Create Big Problems
None of these measures sound dramatic in isolation. A frozen threshold here, a trimmed relief there, an extended timeframe somewhere else.
But that’s precisely why they’re so dangerous to your wealth.
These changes compound over time. What looks like a minor adjustment today becomes a significant cost over five or ten years. The families and businesses who recognise this early are the ones who can take action to protect themselves.
Your Action Plan: What to Do Before 26 November
The window to act under current rules is closing. Here’s what you should be considering:
If You Own a Business
Review your exit strategy now. If you’re planning to sell in the next few years, could you accelerate that timeline? Changes to capital gains tax rates or business reliefs could significantly impact your sale proceeds.
If You’re Planning Family Wealth Transfer
Make gifts while current rules apply. The seven-year survival rule for IHT may be extended. Large gifts made now benefit from today’s more generous rules.
Review agricultural and business property reliefs. If your family business or farm relies on these reliefs, consider whether additional planning is needed.
If You’re a Property Investor
Model the impact of National Insurance on rental income. This could fundamentally change the economics of your portfolio. Consider whether alternative holding structures might protect your returns.
Assess your capital gains position. If you’re planning property sales, the timing could be crucial.
If You’re Saving for Retirement
Maximise contributions under current relief rates. If you’re a higher-rate taxpayer, the current 40% relief on pension contributions may not last.
Review your pension planning if you have large pots. The potential inclusion of pensions in IHT calculations could change your retirement and estate planning entirely.
The DJH View: Preparation Beats Reaction
We expect this Budget to be about erosion, not revolution. The Chancellor will likely deliver multiple smaller changes that together raise substantial revenue.
For our clients, the message is clear: don’t mistake “no big tax rises” for “no financial impact.” The technical changes – the frozen thresholds, the adjusted reliefs, the extended timeframes – can affect your wealth just as much as headline rate increases.
The difference is that these changes happen quietly, without fanfare, and often catch people unprepared.
Your Next Steps
The Autumn Budget 2025 will shape how your income, business and family wealth are taxed for years to come.
Whether you’re a business owner planning an exit, a family considering wealth transfer, or simply someone who wants to make the most of current allowances and reliefs, this is your moment to act.
The best outcomes go to those who plan ahead, not those who react after the fact.
Ready to protect your position? Contact our team today to review your tax planning before the rules change.
