Budget 2025: Reported tax changes and what they mean for you
As the UK Chancellor prepares to deliver the Autumn Budget on 26 November 2025, speculation is mounting about measures to address a significant fiscal gap. While headline tax rates may remain unchanged, there are plenty of rumours about reforms and targeted changes that could impact wealth planning, property transactions, and business strategy.
Inheritance Tax – Lifetime Gifting Limits and Extended Rules
Reported changes
- A lifetime gifting cap.
- Extension of the seven-year rule to ten years.
Impact
Estate planning strategies may need urgent review to ensure compliance and tax efficiency.
Capital Gains Tax
Reported changes
- The government may align CGT rates with income tax, potentially increasing rates to 24% or higher.
- There is talk that there might be a removal of CGT uplift on death.
Impact
Disposal of assets could become significantly more expensive, making timing and structuring critical.
Property Taxes – Mansion Tax and reform of SDLT
Reported changes
- Replacing Stamp Duty Land Tax with a seller-based property tax on homes over £500,000.
- Introduction of a ‘mansion tax’ for properties above £2 million.
Impact
Higher-value property owners should prepare for increased costs and consider restructuring options.
Income Tax – Frozen Thresholds and Rate Adjustments
Reported changes
- Continued freeze on income tax thresholds until 2030.
Impact
A stealth tax on earnings, impacting both individuals and businesses.
Exit tax
Reported changes
- There is talk of a 20% “settling-up charge” on unrealised gains on assets when individuals cease UK tax residency.
Impact
The proposed exit tax could significantly increase upfront costs for individuals leaving the UK, potentially accelerating relocations.
Our Perspective: Proactive Planning Is Essential
At Spencer West, we are closely monitoring these developments. Potential changes could reshape:
- Succession planning for families.
- Property ownership structures for high-net-worth individuals.
- Exit strategies for business owners.
Next Steps
We recommend reviewing your current arrangements now to ensure you understand how your assets are structured. Our team is ready to help you navigate these complexities with tailored advice once the Budget is announced.
Stay Informed
We will be keeping you updated on changes, impact and what to do once the Budget is announced. In the meantime, if you have questions about how these potential changes could affect you or your clients, contact us today.
