Autumn Budget 2025 preview: Key tax and wealth reforms HNWIs and businesses should prepare for

Chancellor Rachel Reeves will deliver the Autumn Statement on 26 November 2025, and speculation is intensifying around what measures may be announced to plug the fiscal gap.

For high-net-worth individuals (HNWIs) and businesses, the greatest focus is on potential reforms to wealth taxation and property taxes. While the government has ruled out raising income tax, national insurance, and VAT for working people, there is mounting speculation that wealth-linked measures could be used to increase revenues.

This Budget could mark a turning point in how wealth is taxed and structured. In this article, Wealth Planning Director, Paul Clifton explores the key areas to watch and how to prepare for what may lie ahead.

Join us on Wednesday 3 December for a webinar debrief on the Autumn Statement and what it could mean for your wealth, business and markets.

Easiest lever

This is one of the easiest levers for the Treasury to pull. Although Reeves has not yet made specific commitments, commentators expect that reliefs, exemptions, and allowances may be tightened.

Rules around lifetime gifting under inheritance tax may be tightened, and the nil-rate band – the £325,000 portion of an estate that can be passed on tax-free – could remain frozen beyond 2030.

For gifts exceeding this nil-rate band, the longer you live after making the gift – up to seven years – the lower the tax due. However, there is also speculation to extend this period to ten years, which could significantly impact estate planning strategies.

This points to heightened risks around estate planning and succession strategies. For businesses, particularly family-owned firms, such changes could complicate intergenerational transfers and increase reliance on trust and corporate structures.

Inheritance tax remains a cornerstone of wealth transfer planning, and there are reforms to both business relief and pensions, announced in the 2024 Autumn Budget, which will be coming into effect in the near future.

• Business and agricultural property reliefs reform – From April 2026, full relief will be capped at £1 million per person. Any value above this threshold will only qualify for 50% relief.
• Pension reform – From April 2027, unused pension savings will be included in your estate for IHT purposes, affecting retirement planning and legacy strategies.

Momentum is building for a stamp duty and council tax overhaul 

Property tax reform appears to be gaining traction. Reeves has reportedly asked officials to model options for a new “proportional” property tax to replace or supplement Stamp Duty Land Tax (SDLT), particularly targeting homes sold for more than £500,000. 

Proposals include a 0.5% annual charge for top-tier properties, with higher rates for second homes and non-UK owners.  

If enacted, such changes would have profound implications for HNWIs and property investors. Higher-value homeowners could face significant new recurring liabilities, and landlords or property businesses may need to reassess cash flow models.  

The Chancellor is also believed to be considering wider reforms to council tax, with particular focus on high-value homes in the upper bands. According to The Guardian, Treasury officials are exploring the potential to phase in these reforms over time, beginning with stamp duty adjustments and later expanding to ongoing annual levies on property values.

Gathering support

Another consideration is that the government may apply national insurance contributions (NICs) to rental income, which is currently exempt. This would directly affect landlords, many of whom are private individuals, and could also increase costs for property businesses. While such a move has not been confirmed, the idea is circulating within Treasury discussions and would be relatively straightforward to implement since rental income is already subject to income tax.

Growing interest in reducing pension tax advantages 

There is also speculation about possible changes to pension rules, which could affect how much you can save and pass on. These may include: 

• Bringing back the Lifetime Allowance – a limit on how much you can build up in your pension without facing extra tax. This was removed in April 2023 but could be reinstated.
• Reducing the tax-free lump sum – currently, you can usually take up to 25% of your pension pot tax-free, capped at £268,275. This amount could be lowered.
• Lowering the Annual Allowance for high earners – this is the maximum you can contribute to your pension each year while still getting tax relief. It may be tightened for those with higher incomes.
• Removing salary sacrifice benefits – currently, salary sacrifice allows you to save on National Insurance when contributing to your pension. These savings could be removed.

If introduced, these measures could significantly reduce the flexibility and tax efficiency of pension saving. For individuals, especially higher earners and those nearing retirement, this may mean reassessing contribution strategies and long-term financial plans to avoid unexpected tax exposure and ensure retirement goals remain on track.

Unlikely, but indirect measures are increasing

Perhaps the most high-profile rumour ahead of the Budget is the introduction of a wealth tax. While Reeves has not categorically ruled it out, she has been careful to stress the government’s priorities. Speaking earlier this year, she said:

“We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people.”

This language leaves open the possibility of a tax on those with significant wealth. 

While the consensus is that a broad, annual wealth tax is less likely in the immediate term, measures such as increased CGT, IHT tightening, and luxury consumption taxes (such as VAT on private school fees and higher air passenger duty on private jets) are being used to target wealth more discreetly.

Taken together, the emerging signals suggest a shift in focus. The government appears to be exploring ways to raise revenue from wealth and property, while maintaining its commitment to avoid broad-based increases in income tax, VAT, or National Insurance contributions for the majority of workers. As a result, those with substantial property wealth or large estates may be more directly impacted by any new measures.

While speculation around the Autumn Budget continues, it is important to remember that effective planning must be grounded in confirmed policy changes – not conjecture and speculation. The uncertainty around the upcoming Autumn Budget underscores the importance of having a financial plan, reviewing it regularly and ensuring it adapts as life changes.

That said, there are changes coming that individuals and businesses can act on now around inheritance tax and pension and business relief reform. These developments do warrant attention.

Our wealth planning specialists work closely with clients to navigate regulatory change, optimise tax efficiency, and preserve wealth across generations. They can help you navigate these changes with confidence.

Tax planning can be complex, and individual circumstances vary. For tailored guidance, we recommend consulting a qualified tax adviser. We cannot accept responsibility for any outcomes resulting from general comments or explanations we provide.