Autumn Budget 25 - What to Expect for businesses and for personal tax UK
Autumn Budget 2025 — What We Expect and Why
The Autumn Budget 2025 is expected to be delivered on 26 November 2025, during a period of tight public finances and slower-than-expected economic growth.
According to several economic forecasts, the Treasury may need to raise between £20 billion and £30 billion in additional revenue to maintain fiscal balance and fund policy commitments.
Because the government has stated it will not raise income tax, national insurance, or VAT for working individuals, attention has shifted toward more targeted measures.
These are likely to involve changes to reliefs, thresholds, and capital or business taxation, rather than headline rate increases.
Personal Tax: Anticipated Changes and Their Effects
Current analysis suggests several personal tax adjustments could feature in this year’s Budget.
The aim appears to be broadening the tax base without directly raising main rates.
Likely Areas of Change
Income tax thresholds may remain frozen, meaning more individuals move into higher tax bands as wages increase.
Pension tax relief and the tax-free lump sum could be adjusted — potentially by introducing a flat-rate relief or lowering the exempt amount.
Capital Gains Tax (CGT) and Inheritance Tax (IHT) reforms are under consideration, including changes to exemptions, rates, or lifetime gift rules.
Three Key Impacts on Individuals
Higher effective taxation: Frozen thresholds could increase total liabilities even if headline rates remain unchanged.
Need for timing strategy: Investors or savers may consider reviewing asset disposals or pension contributions before any reforms take effect.
Greater importance of estate planning: Adjustments to IHT or gift allowances could make long-term planning more critical, especially for higher-value estates.
Business Tax: Anticipated Changes and Their Effects
Companies are expected to face more structural adjustments rather than broad tax-rate increases.
The focus may be on aligning the corporate tax framework with fiscal goals and business investment policy.
Likely Areas of Change
Business rates and property taxation may be modernised, affecting firms with significant commercial property holdings.
Capital allowances and deductions could be tightened, reducing relief available for certain investments or carried-forward losses.
Sector-specific surcharges or levies may be introduced for industries such as finance, energy, or property.
Three Key Impacts on Businesses
Increased property-related costs: Companies with extensive real estate or warehousing may face higher ongoing expenses.
Reduced investment incentives: If reliefs are narrowed, the return on capital projects could decrease, affecting expansion plans.
Pressure on margins: Slightly higher effective taxes and levies could impact profitability, especially for medium-sized enterprises.
Why These Changes Are Expected
Fiscal necessity: The government faces a need to stabilise borrowing and meet fiscal rules, driving the search for additional revenue streams.
Political constraints: With promises to protect everyday earners from direct tax rises, policymakers are turning to reliefs, capital, and property taxation instead.
Structural reform opportunity: There is growing support for simplifying and modernising the tax system to encourage productivity while broadening the base of contribution.
Sources and References
Osborne Clarke, UK Autumn Budget 2025: What Tax Measures Can We Expect?
BDO UK, Autumn Budget 2025: Predictions and Commentary
Saltus, The Autumn Budget 2025 — Predictions and Possibilities
Withers Worldwide, What to Expect from the 2025 Autumn Budget
SW Group, Budget Predictions and Speculation
Simply Business, Autumn Budget 2025 for Small Business
Institute for Fiscal Studies (IFS), Options for Tax Increases
Institute for Government, Rachel Reeves’ Approach to Tax Reform and Growth
Need Expert Guidance?
If you’d like tailored advice on how the upcoming Budget could affect your business or personal finances, contact Arctic Accounting Limited.
We help clients plan ahead with clarity, compliance, and confidence.
