The 2025 Autumn Statement is set for 26 November, and, as always, speculation is building around what tax changes might be announced to address the government’s fiscal shortfall.
Before looking at the possible reforms, let’s recap the tax measures announced in the 2024 Autumn Statement (some of which are still to come into effect).
Key tax changes from the 2024 Autumn Statement
Capital Gains Tax (CGT)
- Rates on non-residential assets increased:
- Basic rate: 10% → 18%
- Higher rate: 20% → 24%
- Business Asset Disposal Relief:
- Rising from 10% to 14% in April 2025
- Then to 18% in April 2026
Inheritance Tax (IHT)
- Nil-rate bands frozen until April 2030
- Business and agricultural reliefs capped from April 2026:
- 100% relief up to £1m
- 50% relief above £1m
- Unused pension pots included in estate value from April 2027
National Insurance (NICs)
- Employer NICs rising 13.8% → 15%
- Employer NIC threshold reduced to £5,000
- Employment Allowance increased to £10,500
Stamp duty
- Surcharge on second homes increased 3% → 5%
- First-time buyer relief threshold reduced from £425,000 → £300,000 (from April 2025)
Rumoured tax changes in the 2025 Autumn Statement
Whilst these are all predictions, the following changes are being rumoured for the 2025 Autumn Statement:
While these have not been confirmed, here are some of the main rumoured tax changes:
Income tax & National Insurance
- Income tax: A proposed 2% increase across all income bands
- Employee National Insurance: Corresponding 2% reduction in employee NI rates
Inheritance Tax (IHT) – lifetime gift cap
- Introduction of a cap on tax-free lifetime gifts
- Potential scrapping of taper relief, meaning gifts within seven years of death could be fully taxable
Capital Gains Tax (CGT) on main residences
A potential “mansion tax”, applying CGT to homes valued at over £1.5 million
Pension tax relief
Current band-based relief could be replaced with a flat rate of 25–30
National Insurance on rental income
Landlords may need to pay NICs on rental profits, bringing them in line with self-employed individuals
Stamp Duty reform
A potential shift of Stamp Duty Land Tax (SDLT) from buyers to sellers.
Preparing for change
The Autumn Statement often brings significant tax reforms, and this year could be no exception. Some of the potential changes, particularly around Inheritance Tax, pensions and property, could have a major impact on financial planning.
If you’d like to review your personal or business circumstances ahead of the announcement, please get in touch with Nick Edwards or your usual UHY private client adviser for tailored advice.
