Potential Tax Changes Making Headlines: Autumn Statement 2025

With the potential tax changes that are making the headlines, is it time to plan ahead?

As the 2025 Autumn Statement approaches, as always, speculation is swirling over the potential tax changes that could be implemented. Having already seen significant hikes in the Spring 2025 budget, and with a rumoured £50billion black hole to fill at the next Autumn Statement, tax planning now seems more crucial than ever. Some of the most talked about ideas at the time of writing are outlined below.

Taxing Rental Income via National Insurance

Under current legislation, rental profits currently do not attract National Insurance Contributions (NIC). However, the treasury is reportedly considering applying NIC to rental profits to raise an estimated £2billion.

Fiscal Drag

In recent years, the term ‘fiscal drag’ has increasingly been used as a synonym for ‘stealth tax’, with frozen tax allowances and thresholds allowing wage growth to drag more people into the higher rates of tax. This is often seen as a political ‘easy win’ as there is no increase to the headline rates of taxation and further freezes beyond April 2028 (the point at which current freezes are scheduled to end) certainly seems to be firmly on the table.

Inheritance Tax Reforms

Often referred to as the ‘UK’s most hated tax’ individuals, particularly business owners/farmers and retirees, are already reeling from the cuts to Agricultural/Business Property relief and the announcement that pensions will be subject to Inheritance Tax from April 2027.

The outlook in terms of Inheritance Tax now looks particularly bleak, as there is growing talk of curbing lifetime gifts with the possibility of a ‘lifetime gifting allowance’ or increasing the ‘7-year clock’ to 10 or even 15-years.

Why Act Now?

These proposals are far from certain, but the uncertainty alone is already influencing market behaviour with landlords, in particular, looking to incorporate their businesses or exiting their businesses altogether.

Whilst the outlook is bleak, but by no means certain, the good news is that some tax planning prior to the budget could mitigate against these changes if they were to come to fruition.

Whether its restructuring property holdings by incorporating, pension contribution planning, or making lifetime gifts either directly or via a trust, it certainly seems like the right time to explore these options.

Please do get in touch with myself, your local Whitings office, or your usual point of contact at Whitings if you would like to discuss tax planning opportunities further.

Disclaimer - All information in this post was correct at time of writing.