While this reassurance may comfort UK employees, it does limit the options available to Chancellor Rachel Reeves as she works to reduce the UK’s growing economic deficit. With personal tax rates largely protected, many commentators believe the government may instead turn its attention to business taxes and wealth taxes to raise revenue. 

 

So, what tax changes could we see in the Autumn Budget on 26th November 2025—and how might they affect you, your family, or your business? 

Capital Gains Tax is strongly tipped for reform. We may see higher CGT rates or a further cut to the tax-free allowance, which has already been reduced in recent years. Another possibility is an extension of CGT to cover high-value residential properties, which could impact homeowners looking to sell. 

 

The current IHT threshold of £325,000 has been frozen since 2009, and reforms could be on the way. Lowering this threshold or tightening rules around gifting could increase the tax burden on estates passed down to the next generation. 

 

Although the Labour Party has pledged not to raise income tax rates, the ongoing freeze on thresholds could continue. This “stealth tax” means more people will be pushed into higher tax brackets as wages rise. 

 

Possible pension reforms include limiting the tax-free lump sum that retirees can take or restricting the tax efficiency of salary sacrifice schemes. These changes could particularly affect higher earners and business owners using pensions as part of their tax planning strategy. 

The Chancellor may consider reducing the VAT registration threshold (currently £90,000 per year), which would force many more small businesses to register and charge VAT. A broader scope of VAT could also bring more goods and services into the taxable bracket. 

 

Although not strictly part of the Budget, changes to business rates are looming. Experts warn of a possible “double hit” for UK businesses that could push total rates bills up by £2.5bn—a significant challenge for SMEs. 

 

Entrepreneurs planning to sell their companies should pay close attention. BADR, which reduces the rate of CGT on business sales, has already increased from 10% to 14% (April 2025), with a further rise to 18% scheduled for April 2026. Additional changes to eligibility or timing could be on the horizon. 

At Bidwell Accountancy Ltd, we specialise in helping small businesses, limited companies, and sole traders in Milton Keynes navigate the ever-changing tax landscape. Whether it’s tax planning, bookkeeping, payroll, or preparing your year-end accounts, our expert team ensures you stay compliant while minimising your tax burden. 

 

We’ll be publishing a clear summary of the Autumn Budget 2025 once the Chancellor delivers her speech—highlighting exactly what it means for you and your business.