The Autumn Budget will set the tone for fiscal policy through the end of the decade. With limited headroom and significant spending commitments, it’s vital to understand what’s coming.
Snapshot Summary
Expect continued income tax threshold freezes, further Capital Gains Tax increases, tighter inheritance rules, and possible changes to pensions and ISAs. Businesses should prepare for higher NICs, minimum wage rises, and closer compliance scrutiny.
In this article, you will get an understanding of the key areas under review and a highlight of key considerations in advance of the Budget.
Income tax
We expect the Chancellor to extend the freeze on personal tax thresholds, potentially through to 2030. This would yield an additional £7bn per year as more earners fall into higher tax banding.
Key consideration:
Due to the ongoing continuation of fiscal drag and the silent rise in effective tax, business forecasting becomes a critical component to maintain growth and profit projections.
Capital Gains Tax (CGT)
CGT continues to be a key area of focus, with measures already in motion from the October 2024 Budget, including changes to Business Asset Disposal Relief and carried interest rules.
Oldfield expects:
- Further narrowing of reliefs
- Additional increases in CGT rates
- Potential changes to second home or asset-specific CGT treatment
Key consideration:
Set some time aside to review your current asset disposal strategies and make sure the roadmap for that is complete. With any major assets, on-going assessment should be carried out, especially up to the financial year starting April 2026.
Inheritance Tax (IHT)
While reforms to Agricultural Property Relief and unused pension value inclusion have already been legislated (for 2026 and 2027 respectively).
Oldfield expects:
- Freezing or reducing the nil-rate band
- Extending the 7-year gift rule to 10 years
Key consideration:
Farming families, rural estate owners, and business owners with high-value assets should prepare for tighter rules and increased exposure. Get prepared and plan out your IHT strategy to realise the best outcomes.
Pensions & ISAs
Although the £20,000 ISA limit is expected to remain,
Oldfield expects changes to:
- Cash ISAs, potentially being restricted to encourage equity investment
- Salary sacrifice, arrangements which may lose tax/NIC exemptions for higher earners
Key consideration:
Complete a full review of executive reward strategies and personal tax planning before the new tax year. Having this in place means that when the time comes you are ready to make the decisions required.
Business Tax
Although no major changes to corporation tax have been confirmed,
businesses could still face:
- NIC increases (building on the 2024 employer rate rise)
- Closure of tax reliefs around AIM-listed shares or sector-specific reliefs
- Further increases in the minimum wage rates
Key consideration:
As a business owner, you should anticipate a wider “pay ripple effect” across salary bands due to any changes in the minimum wage. These updates could affect your profit, so a proactive plan is essential to understand each outcome.
Compliance Spotlight
HMRC has signalled a stronger stance on PAYE compliance, especially in regards to umbrella companies. A public list of flagged schemes is expected by April 2026.
Key consideration:
If you use contract or temporary staff, you may fall into non-compliance. Whilst this would be accidental, it’s vital to review third-party providers to avoid any surprises
In conclusion…
With major spending commitments in place and limited fiscal headroom, the Autumn Budget is shaping up to be a key moment for proactive tax and cash flow planning.
Oldfield is able to help you in all 6 of the areas highlighted above and offer a free consultation, Get in touch today to plan your future with confidence.
Please note: This article is for general information purposes only and was correct as at the time of writing (03/09/25) and does not constitute financial advice. Budget proposals may be subject to change. You should contact us before taking any action as a result of the contents of this summary.Tax rules and legislation are subject to change, and their application depends on your individual circumstances. We recommend seeking advice from a suitably qualified tax adviser, and where relevant, an FCA-authorised financial planner. Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.
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