What’s ahead? Budget rumblings
There’s a Budget coming. The Autumn budget is scheduled for 28th October, and will be John Healey’s first Budget as Chancellor of the Exchequer, appointed in July by the new Prime Minister.
We don’t have a hotline to the Chancellor’s office, and – full disclosure – these are currently rumours doing the rounds amongst political and financial commentators on what they believe the government may look at in the Autumn budget from a taxation point.
The things that are most likely to affect people are:
- Pensions. This is an area already targeted by the Labour government and also meddled with by previous governments. Could they look to tax the 25% tax free lump sum or reduce this tax free amount?
- Will we have more answers on the landscape for Inheritance tax when pension pots form part of an individual’s estate from 6th April 2027. If you’re considering taking tax free lump sum, might be worth doing it before things change.
- Capital Gains Tax – this is always viewed as being an easy win for government to increase tax income. Could Capital Gains Tax higher rates be aligned with income tax? So 40% instead of 24%.
- Will business asset disposal relief (entrepreneurs relief) be scrapped or reduced to £500k from £1 million?
Don’t hang your hat on them or make rash decisions. If you are looking at decisions impacted by any of these issues or in the process of these transactions, it may be worth having these completed pre 28th October 2026.
Sometimes changes are immediate and sometimes from the beginning of the next tax year – but where they’re reducing benefits, they’re likely to want to close the door promptly to ensure they get the maximum tax benefit to balance out government borrowing.
