With the Autumn Budget due on 26 November 2025, speculation is mounting about which taxes could rise and where the Chancellor might look for extra revenue. After ruling out increases in the main rates of income tax, National Insurance and VAT, attention is shifting to the so-called “stealth” areas of the tax system, the ones that can quietly increase tax receipts without grabbing headlines.
Below, we outline the main themes currently circulating and what they could mean for clients.
Property and housing taxes
The property sector is attracting particular attention this year. There is talk of a complete overhaul of Stamp Duty Land Tax (SDLT), possibly replacing it with a more regular, value-based property tax aimed at higher-value homes. Some analysts believe this could be combined with a tightening of reliefs such as the residence nil-rate band, which reduces Inheritance Tax on family homes.
There is also speculation that second homes and buy-to-let properties may face higher charges, either through SDLT reforms or changes to Capital Gains Tax. Meanwhile, parts of the housing market appear to be slowing as buyers and sellers wait to see what the Budget may bring.
Anyone planning a sale or purchase before the end of the year should be aware that rules could change suddenly, particularly if property-related measures are announced to take effect from Budget day.
Wealth and high-earner targeting
Higher earners are another focus of speculation. Reports suggest the government could review how partners in professional practices, such as LLPs, are taxed compared with employed staff. A tightening of the partnership rules, or the removal of certain structuring advantages, could raise additional revenue while being presented as a fairness measure.
Capital Gains, Inheritance Tax and “stealth” changes
Capital Gains Tax (CGT) remains firmly in the spotlight. Aligning CGT rates with income tax would significantly increase the tax payable on the sale of investments and second homes. Other suggestions include reducing the CGT annual exemption or restricting Business Asset Disposal Relief.
Inheritance Tax (IHT) could also be tightened. The government might extend the period before gifts fall outside an estate, reduce reliefs, or lower the private residence nil-rate
band. Similarly, savings/investment allowances such as ISAs could be trimmed or frozen, which would quietly raise additional revenue as inflation erodes their real value.
A difficult fiscal backdrop
Public finances remain stretched. With borrowing high and economic growth subdued, the government is thought to be seeking £20-30 billion in additional tax or spending cuts. Because increasing headline rates would break election promises, the most likely route is through freezes and incremental changes that gradually bring more taxpayers into higher band, the classic “stealth tax” approach.
What this means for clients
For clients holding high-value property, planning asset disposals, or managing large investment portfolios, these possibilities underline the importance of a pre-Budget review. Some may wish to complete disposals under current CGT rates, while others might explore pension top-ups or gifting strategies while existing reliefs remain.
Business owners, directors and professional partners should also monitor how any structural or partnership reforms might affect their remuneration and tax exposure.
Take advice before making changes
It is important to stress that all of these measures are still speculative. Acting on rumour can create unintended tax consequences, particularly where timing and interaction with other reliefs are involved.
If you are considering a disposal, pension contribution, or business restructuring before the Budget, please contact us first. We can help you assess your position, model possible outcomes and ensure that any action taken fits your wider financial and tax plans.
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