Everything You Need to Know
The Autumn Budget is fast approaching, and speculation is mounting over what it will look like for individuals, SMEs and limited companies. It’s easy to fall down a rabbit hole of unproven speculation until the Budget is officially laid out in Parliament, and that’s where we come in. Here is what is expected and how our team can help you.
Summary
- The Autumn Budget is set for the 26th of November
- Big changes such as tax rises and ISA allowance cuts are predicted to be on the cards
- It’s a time of uncertainty for individuals, SMEs and limited companies
- It has never been more important to seek professional advice
What is the Autumn Budget?
First things first: what is the Autumn Budget? It’s a UK government announcement made by the Chancellor of the Exchequer (currently Rachel Reeves) every autumn that lays out the spending and tax plans for the following year. It’s also a big update on the UK’s finances, and provides us with information on the economy, taxes, and government spending on public services. It also cites economic forecasts and how they have influenced the government’s fiscal manoeuvres.
When is the Autumn Budget?
The Autumn Budget is set for the 26th of November. This is almost a month later than 2024’s Budget, which was unveiled on the 30th of October. This delay was given so that the Office for Budget Responsibility could have more time to work on its forecasts. Of course, the budget being postponed for just a few weeks has led to intense speculation.
Key Predictions
What are some of the biggest predictions for this year’s budget, then? Of course, anything that we say should not be taken as certain until the Budget is officially announced, but some of the predictions that have gained a lot of traction in recent weeks and months are:
- The £20,000 ISA allowance will be halved for cash ISAs but will remain for stocks and shares ISAs. This is to encourage more investment in the UK stock market.
- While Labour campaigned on a promise to not raise income tax, this could be set to change with the Chancellor warning that the Budget would have to be ‘fair’ with everyone doing their bit.
- To dodge some of the negative press that comes from tax rises, income tax thresholds could be frozen. This is also known as the ‘stealth tax’ effect and results in higher effective rates rather than headline rate rises.
- Possible restrictions on pension tax-free cash and contribution relief.
- Capital Gains Tax (CGT) and Inheritance Tax (IHT) changes are on the radar. We could see the freezing or reduction of allowances, or CGT being signed, aligned with income tax.
- A reform of the current business rates system has been strongly predicted for some time, with the Chancellor announcing new rates for retail, hospitality and leisure businesses.
- A charge could be introduced for limited liability partnerships (LLPs), which are currently not subject to employers’ National Insurance.
- Changes to VAT rules/corporate taxes.
Increases to the trading allowance have been mooted, but are seen by some experts as less likely. Nothing is off the table, though, and we won’t know until the 26th of November what the Chancellor has in store.
Business & Individual Impacts
Just one of the above could have a big impact on your finances, but with so many changes lined up it is easy to feel overwhelmed. We specialise in helping individuals and businesses alike, so we are here to give you the support you need.
What This Means for You
So, what will the UK Autumn Budget mean for you? This is so hard to answer without knowing more about your unique financial situation. It could be a good idea to review your tax, investment and business spending positions now. Reviewing pension contributions, ISA allocations, capital gains disposal strategy, and your business investment timings are advisable too.
You should never make rash decisions based solely on rumours. Instead, seek professional advice from our team. We can help you to plan ahead and then take the right action as soon as the Budget is announced.
Talk to Us
If you’d like help reviewing how the Autumn Budget 2025 might affect your finances or business, our team at Linda Carr Accountants are here for you. Get in touch today.