There is growing speculation that the Chancellor may soon raise the basic rate of Income Tax from 20% to 22%. At the same time, it is thought that a corresponding 2% cut in employee National Insurance contributions could be introduced. Together, these changes would shift how the overall tax burden is shared, particularly between working individuals, pensioners, and landlords.

Although nothing has been formally announced, the idea has gained momentum in recent weeks. The reasoning is simple enough: by increasing Income Tax and cutting National Insurance, the Government could raise more revenue without appearing to penalise those in work. It would make the tax system appear more balanced, but in reality, it would have very different effects depending on the type of income you receive.

For employees

If you are in employment, the two changes may largely cancel each other out. Employees pay both Income Tax and National Insurance on their earnings. At present, basic rate taxpayers pay 20% Income Tax and 8% employee National Insurance on most of their pay.

If Income Tax rises to 22% and National Insurance falls to 6%, then the increase in one would broadly offset the decrease in the other. For example, for every £100 of taxable pay, you would pay £2 more in tax but £2 less in National Insurance. In theory, this means little change to take-home pay.

However, the detail matters. National Insurance applies only to earned income up to an upper earnings limit (currently £50,270). Those earning above that level may not benefit from the full reduction. Similarly, if higher rate tax bands remain unchanged, some employees could see a small increase in their overall bill.

It would also be worth checking whether you are part of a salary sacrifice pension arrangement, as the value of those schemes depends partly on National Insurance savings. A lower NIC rate may slightly reduce the benefit of such arrangements.

For pensioners and landlords

The position is very different for those who do not pay National Insurance. Pensioners, landlords, and individuals living on investment income currently pay Income Tax but no NIC. A 2% rise in the basic rate would therefore increase their total tax liability, with no offsetting reduction.

A pensioner receiving £30,000 of taxable pension income could pay around £600 more tax each year if the basic rate rises to 22%. Similarly, a landlord earning £25,000 of rental profit would face an additional £500 of tax. For anyone, whose income comes largely from pensions, rent, or investments, this would amount to a direct increase in the effective tax rate.

This shift would represent a deliberate rebalancing of taxation towards unearned income. The Government could claim that “working people” are protected, but those living from pensions or savings would shoulder a greater share of the burden.

For the self-employed

The self-employed occupy a middle ground. They pay both Income Tax and Class 4 National Insurance, but the NIC rates and thresholds differ from those for employees. Whether they gain or lose would depend on whether the Budget also cuts self-employed NIC. If not, they could experience an overall increase in their combined tax and NIC bill.

What you can do now

Until the Budget is announced, nothing is certain, but it makes sense to plan ahead. Review your sources of income and estimate how much is subject to National Insurance and how much is not. If most of your income is from pensions, rent, or investments, you should prepare for a possible rise in your tax bill from next April.

Employees may not notice much difference, but anyone outside the NIC system could. A simple review now can help you plan, budget, or consider timing income or pension withdrawals before rates change.

We will provide a full update once the Chancellor confirms the details in the Autumn Budget.

If you feel this article could help a business colleague or family member, please feel free to share it with them.

There is a common hesitation that many business owners and individuals experience when considering professional advice. People often look at the fee first and think of it simply as an expense. However, when advice is viewed only through the lens of cost, the real value can be overlooked. Good advice is an investment. It is about improving outcomes, avoiding risk, solving problems, and freeing up time and confidence to move forward.

One of the most useful shifts in thinking is to stop asking what something costs and begin asking what it is worth. Cost is a number. Value is the improvement in your position after the advice has been received and acted upon. The two are rarely the same.

A useful way to approach this is to think about the problems you are trying to solve. Every person and every business has challenges that create stress, uncertainty, or inefficiency. These problems may include tax concerns, cash flow pressures, unclear decision making, lack of direction, concerns about retirement, uncertainty about selling a business, or simply not knowing what the future will look like. These issues carry a cost of their own. The cost can be financial, emotional, or operational.

When advice resolves a problem, that cost is reduced or removed. The value is in the resolution. If the advice allows you to avoid a mistake, reduce your tax burden, make a confident decision, or bring clarity to your planning, then the return can be many times greater than the initial fee.

This is why measuring the value of advice matters. Instead of asking “How much will this cost?” it is more helpful to ask:

• What problem will this help me solve?
• What would happen if I did nothing?
• How much am I already paying, through worry or inefficiency, by not acting?
• How will my position improve once the issue is resolved?

The real measure is not the price of the advice. It is the difference between where you are now and where you will be after the advice has been applied.

Advice also delivers something less tangible but often more valuable. It delivers clarity and direction. Knowing that a knowledgeable professional has reviewed your position and given clear guidance removes guesswork. It reduces stress. It makes planning easier. It allows you to act with confidence rather than hesitation.

This is particularly important for business owners who carry a great deal of responsibility. Running a business can feel isolating. It is easy to delay decisions because of uncertainty. Advice provides structure. It turns vague concerns into clear plans.

When viewed from this perspective, advice is not a cost to be avoided. It is support, guidance, and strategic clarity that strengthens your financial and personal position. The return is seen in reduced risk, better decisions, improved outcomes, and peace of mind.

So, the next time you weigh up whether to seek advice, consider the value of having the problem solved. The real question is not what the advice costs, but what the solution is worth to you.

And what it may mean for tax planning and business decision making

Rachel Reeves’ recent speech has provided a clear indication of the Government’s direction on economic management, taxation, and public investment. While the next Budget will be needed to confirm specific measures, it is already possible to see the themes that are likely to shape policy in the months ahead. For business owners, company directors, investors, and individuals planning for retirement or succession, this is a timely moment to review arrangements and consider future planning options.

This article summarises the key points and highlights practical steps that can be taken now.

A Growing Expectation of Tax Changes

Reeves acknowledged that public finances remain under strain. To support public services and avoid another period of deep spending cuts, future Budgets may include tax increases or adjustments. This is positioned as a practical response rather than an ideological one, but it will still be relevant for many taxpayers.

No detailed measures were confirmed, but areas likely to be examined include:

� Thresholds for higher and additional rate income tax

� The relationship between income tax and capital gains tax rates

� Business reliefs and allowances

� Tax treatment of income drawn from companies through dividends and salaries

Individuals who are planning significant transactions, such as selling a business or property, or who have investment portfolios carrying unrealised gains, may benefit from assessing timing and options in advance. Company directors who use mixed remuneration strategies may also wish to review their position.

An Emphasis on Long-Term Economic Strength

A major theme of the speech was the need to support long-term growth in productivity and investment. The Government sees increased investment in infrastructure, skills, research, and technology as essential to improving the UK’s economic performance over time.

This could lead to support for:

� Innovation and research projects

� Regional business development and regeneration

� Training and workforce development initiatives

However, where support is expanded, the criteria for existing reliefs may tighten or shift. Businesses claiming innovation reliefs, for example, should ensure that their record-keeping and evidence remain strong.

Ongoing Pressure on Public Services

The speech also recognised that public services remain under significant pressure. The Government aims to protect essential services while managing costs responsibly. For individuals, this reinforces the importance of private planning for retirement and future care. For businesses, it may influence access to local funding or support programmes and could lead to changes in how public contracts or approvals are managed.

A Continued Intention to Simplify Regulation

Although this was not the central focus of the speech, the Government has repeated its intention to simplify regulation where possible. For businesses, this may eventually mean clearer compliance obligations and more consistent reporting standards. For advisers and accountants, there is likely to be ongoing demand for support in updating systems, improving management information, and planning for growth or restructuring.

Practical Steps to Consider Now

Even before the Budget, there are several useful reviews that may help individuals and businesses stay prepared.

For individuals:

� Review taxable income levels for the current year

� Consider pension contributions for tax efficiency

� Review whether gains should be realised sooner rather than later

� Ensure estate and gifting plans are up to date

For business owners and directors:

� Review salary and dividend strategies

� Update financial forecasts and cash flow planning

� Prepare management accounts to ensure accurate decision making

� Consider whether any ownership transfers, exits, or succession plans are likely within the next few years

These actions do not require commitment to any specific outcome. They simply allow decisions to be made from a position of clarity if changes are introduced.

How We Can Assist

We are available to provide review sessions to help assess your present position and explore planning opportunities. These sessions can focus on personal tax, business structures, capital gains planning, retirement planning, or estate planning, depending on your circumstances.

If you would like to arrange a conversation, please feel free to contact us.

If you feel this article could help someone you know, please feel free to share it.

The Winter Fuel Payment is a familiar part of the support many older people receive each year. It is designed to help with heating costs over the colder months and is paid as a tax-free lump sum. However, the rules have changed in recent years, and the payment is no longer a universal benefit. It is now influenced by household income and by where the person lives within the UK. For clients approaching or already in retirement, it is important to understand how the payment works and what has changed for the winter of 2025 to 2026.

Who can receive the Winter Fuel Payment

The payment applies to individuals who were born on or before 21 September 1959. To qualify, the person must also have been living in England or Wales during the qualifying week, which for the 2025 to 2026 winter is the week beginning 15 September 2025.

If a person is already receiving the State Pension or certain other benefits, the payment is usually made automatically. Those who defer their State Pension, or who do not receive any of the qualifying benefits, may need to submit a claim. The deadline for claims for this winter is expected to be 31 March 2026.

It is important to note that Scotland now operates a different system. The Winter Fuel Payment does not apply in Scotland. Instead, there is a Scottish Pension Age Winter Heating Payment, and the eligibility criteria and application method differ. Clients who have moved or who spend parts of the year in different regions should check that their residency is clear for the qualifying week.

How much is paid

The standard payment is £200 for households where the eligible person is under 80 years old at the qualifying date. If the person is aged 80 or above, the payment rises to £300. Only one payment is made per household, determined by the age of the oldest qualifying resident.

Income testing and recovery of payments

The major change now in place is the income test. The payment is still made to most eligible people, but if the person’s taxable income exceeds £35,000 per year, the payment will be reclaimed through the tax system. In practice, this means that the person may receive the payment in November or December, but will see their tax code adjusted later, or the recovery will be carried out through the Self-Assessment process.

For clients whose income fluctuates around the threshold, it may be sensible to review the timing of pension withdrawals or other income sources. The threshold applies to taxable income, so private pensions, savings interest, rental income and employment income are all relevant

1 November 2025 – Due date for Corporation Tax due for the year ended 31 January 2025.

19 November 2025 – PAYE and NIC deductions due for month ended 5 November 2024. (If you pay your tax electronically the due date is 22 November 2025.)

19 November 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 November 2025. 

19 November 2025 – CIS tax deducted for the month ended 5 November 2025 is payable by today.

1 December 2025 – Due date for Corporation Tax payable for the year ended 28 February 2025.

19 December 2025 – PAYE and NIC deductions due for month ended 5 December 2025. (If you pay your tax electronically the due date is 22 December 2025).

19 December 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 December 2025. 

19 December 2025 – CIS tax deducted for the month ended 5 December 2025 is payable by today.

30 December 2025 – Deadline for filing 2024-25 self-assessment tax returns online to include a claim for under payments to be collected via tax code in 2026-27.

As of April 2025, directors of close companies and self-employed taxpayers face new mandatory reporting requirements on their Self-Assessment returns.

Up to 900,000 company directors and 1.2 million taxpayers carrying on a trade will be impacted by new rules that require them to provide more information when filing their 2025-26 self-assessment returns.

Legislation has been enacted that introduces mandatory reporting obligations for certain taxpayers, including those who begin or cease trading and directors of close companies. These measures came into effect on 5 April 2025 and apply for the current 2025-26 tax year and later tax years.

Company directors of close companies will face new reporting requirements. Most small private companies will meet the definition of a close company and there are some specific tax rules that apply to these companies. From 5 April 2025, taxpayers impacted by the change must confirm whether they are directors of a close company and provide further details, including the company’s name and registered number, the value of dividends received and their percentage shareholding in the company. If shareholding changes during the year, the highest percentage held must be reported. Answering these questions will be mandatory when submitting 2025-26 tax returns and beyond.

The new rules also introduce a mandatory requirement to report the start or cessation of a trade that was previously a voluntary requirement. Taxpayers are now required to include the date of commencement or cessation of their business in their tax return, whether for personal tax, partnerships or trustees. This change applies to tax returns for 2025-26 and beyond.

HMRC has issued a press release urging 18-23 year olds who have yet to claim their Child Trust Fund (CTF) cash to do so as soon as possible. According to HMRC, over 758,000 young adults in this age group have unclaimed funds, with the average savings pot estimated to be around £2,240.

Anyone who turned 18 on or after 1 September 2020 could have unclaimed money in a dormant CTF. Parents of children aged 18-23 should also check if their children have claimed the funds to which they are entitled.

Children born between 1 September 2002 and 2 January 2011 were eligible for a CTF account, with the government contributing an initial deposit, typically at least £250. These accounts were set up as long-term savings for newly born children.

HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:

‘If you’re between 18 and 23, you could be sat on a savings payout and not even realise it. Just search ‘find my Child Trust Fund’ on GOV.UK to find your savings account today.’

More than 563,000 young people went online to find their CTF in the 12 months to August 2025. September 2024 was the busiest month when over 71,000 searches were submitted.

Approximately 6.3 million Child Trust Fund (CTF) accounts were created during the scheme’s operation. If a parent or guardian was unable to open an account for their child, HMRC stepped in and set up a savings account on the child’s behalf.

The remittance basis of taxation for non-UK domiciled individuals (non-doms) was replaced with the new Foreign Income and Gains (FIG) regime from April 2025. This new regime is based on tax residence rather than domicile. Under the new rules, nearly all UK-resident individuals must report their foreign income and gains to HMRC, regardless of whether they had previously claimed remittance basis or are claiming relief under the FIG regime.

Former remittance basis users not eligible for the new FIG relief are now taxed on newly arising foreign income and gains in the same way as other UK residents. However, they will still be taxed on any pre-6 April 2025 FIG that is remitted to the UK.

A key feature of the new regime is the 4-year FIG relief. This is available to new UK residents who have not been UK tax resident in any of the 10 preceding tax years. These individuals can opt in to receive full tax relief on their FIG for up to four years. Claims must be made via a self-assessment return, with deadlines falling on 31 January in the second tax year after the relevant claim year. The FUG relief lasts for a maximum of 4 consecutive years starting from when a person first became a UK tax resident. Claims can be made selectively in any of the four years, but any unused years cannot be rolled over.

The types of foreign income which are eligible for relief includes:

• profits of a trade carried on wholly outside the UK
• profits of an overseas property business
• dividends from non-UK resident companies
• interest, such as interest paid on a foreign bank account

An individual’s ability to qualify for the 4-year FIG regime will be determined by whether they are UK resident under the Statutory Residence Test (SRT).

From 18 November 2025, all company directors and people with significant control (PSCs) will be legally required to verify their identity at Companies House. This verification is being phased in over 12 months and Companies House is contacting companies directly with guidance regarding what needs to be done and by when.

These changes are intended to help ensure that people setting up, running and controlling companies are who they say they are. An estimated 6 to 7 million people will need to verify their identity by November 2026. The verification process will usually be a one-time requirement. Verification can be undertaken directly with Companies House through GOV.UK One Login or via an Authorised Corporate Service Provider (ACSP).

If you are using GOV.UK One Login you will be asked simple questions to find the best way for you to verify your identity. You must provide answers about yourself, not your company. Depending on your answers, you will then be guided to verify:

• with an app 
• by answering security questions online 
• by entering your details from your photo ID on GOV.UK One Login first, then going to a participating Post Office

To verify your identity at Companies House, you can use the GOV.UK online verification service if you have one of several accepted photo identification documents. These include a biometric passport from any country, a full or provisional UK photo driving licence, a UK biometric residence permit or card or a UK Frontier Worker permit.

If you do not have any of the accepted forms of photo ID but live in the UK, there are alternative ways to verify your identity. This includes verifying your identity in-person at a Post Office or using details from your bank or building society account together with your National Insurance number.

If you are unable to verify your identity using any of the available online or in-person methods, you can appoint an ACSP, such as an accountant or solicitor to verify your identity on your behalf. The ACSP must be registered with Companies House and a UK Anti-Money Laundering (AML) supervisory body. You will need to provide approved documents as evidence of your identity and the agent may charge a fee for their services.

Many people put off writing a Will. It is easy to understand why. It feels like planning for something that is hopefully far away, and it can feel uncomfortable to think about what will happen after we are no longer here. Yet having a Will in place is one of the most considerate and practical steps that any person can take. It ensures that the people and causes we care about are supported, that our wishes are respected, and that the administration of our estate is as straightforward as possible for the family and friends we leave behind.

A Will is not just a document that divides property. It is a message of clarity, organisation, and care. Without one, the law takes over and may distribute our assets very differently from what we would have chosen. The absence of a Will can lead to delays, costs, confusion, and sometimes conflict, even in the closest of families. By contrast, a clear and well prepared Will can provide a sense of direction, certainty, and fairness.

This is particularly important in modern family life, which often includes blended families, stepchildren, unmarried partners, and complex financial arrangements. The law still assumes a traditional marriage and direct bloodline structure, and where that does not match the real circumstances, the results can be unfair and distressing.

Control and clarity

Having a Will allows you to decide who inherits what. It enables you to direct your assets towards your chosen beneficiaries, whether that is your spouse, your children, grandchildren, friends, or charitable causes. Without a Will, the law follows the intestacy rules, which decide who receives your estate. These rules do not account for personal relationships or wishes, and they do not recognise unmarried partners at all.

A Will also allows you to make specific gifts. Many people value the ability to pass on sentimental possessions that carry emotional meaning. A simple personal item can hold great value as a connection to memory and identity.

Reducing stress for family and friends

When someone dies, their family are already dealing with grief and emotional strain. If there is no Will, the process of sorting out finances and legal arrangements becomes harder. There are complicated forms, requirements to gather financial information, and decisions that need to be made. If there is uncertainty, people may disagree on what the person would have wanted. A Will removes this pressure. It acts as a clear instruction sheet. The executors know what needs to be done, and the family can move through the process with less confusion.

Protecting children and dependants

For parents of young children, a Will is particularly important because it allows you to name guardians. This determines who will care for your children if both parents die while they are still under 18. Without a Will, the decision can be left to the family court. Even when family members are willing, it can create stress, delay, and potential disputes. By naming guardians, you provide stability and reassurance.

A Will can also be used to set up trusts to ensure that young beneficiaries do not receive significant sums of money before they are ready to manage them responsibly. Many Wills provide that children receive access to funds at staged ages, which allows money to support education, training, or living costs, while preserving capital for maturity.

Managing tax efficiently

A Will can also play an important part in reducing inheritance tax. The way assets are passed between spouses, civil partners, or through charitable gifts can influence tax outcomes. For larger estates, careful planning can make a significant difference. Even modest estates can benefit from straightforward planning to allow for residence nil rate bands and other reliefs to be used effectively.

Without a Will, assets may not be passed in the most tax efficient way. This can reduce the amount available to beneficiaries and may mean that money is paid to HMRC unnecessarily.

Supporting partners where couples are unmarried

Many couples live together for many years without getting married. In these situations, the law does not automatically recognise the partner as a beneficiary. Even if the relationship has lasted decades, the surviving partner may receive nothing from the estate unless assets are held jointly. They may also lose the right to remain in the shared home if the legal ownership is not arranged correctly. A Will makes sure that the partner is protected and that the home and finances can continue in a fair and manageable way.

Avoiding disputes

Most families function well when communication is clear. A Will can prevent misunderstanding about what the deceased intended. Without a Will, family members may assume that certain arrangements were intended or promised. Disputes over property can damage relationships for years. A Will sets everything out in writing, in advance, reducing the risk of conflict.

Charitable giving

A Will allows you to support organisations and causes that matter to you. For some, this is an important part of leaving a legacy. Gifts to charities can also be exempt from inheritance tax, and in some cases, can even reduce the tax payable on the remainder of the estate.

Keeping a Will up to date

A Will should not be seen as a one-time task. Circumstances change. Families grow, relationships shift, and finances develop. It is sensible to review a Will every few years or when major events occur such as marriage, divorce, the birth of a child, the sale of a home, or retirement.

In summary

A Will provides clarity, fairness, and peace of mind. It protects the people you care about and ensures that your wishes are respected. It can reduce stress, avoid conflict, safeguard children, and help manage tax more effectively. Above all, it is an act of thoughtfulness towards those who will need clarity and support after you are gone.

A Family Investment Company (FIC) is a private limited company that is structured and run to hold, manage and grow family wealth in a controlled, tax-efficient way. It has become increasingly popular in the UK as an alternative to using trusts, especially since tax rules around trusts have tightened in recent years.

Here’s how it works and why families use them:

The basic idea

An FIC is usually created by parents or grandparents (the “founders”) who transfer cash, investments, or other assets into a company instead of holding them personally. The company then invests those funds, for example, in shares, bonds, property or other long-term assets, with the goal of growing the family’s wealth over time.

The key feature is that the founders retain control over the company, while passing the economic benefit of future growth to their children or other family members.

This is done through a careful division of share classes:

� Voting shares are typically retained by the founders, allowing them to make decisions and control distributions.

� Non-voting shares are usually given to children or held in trust for them, allowing them to benefit from dividends and capital growth without having day-to-day control.

Why families set them up

1. Control Parents often want to pass wealth to the next generation but are reluctant to give away full control. A Family Investment Company allows them to retain decision-making power while transferring future growth outside their estates.

2. Tax efficiency Companies are generally taxed at lower rates than individuals on investment income and capital gains.

� The Corporation Tax rate (currently 25 per cent for most companies) is often less than higher-rate personal income tax.

� Dividends received by a company from most UK and overseas shares are usually exempt from Corporation Tax.

� The company can also deduct certain expenses, such as management or professional fees, before tax.

When profits are eventually distributed as dividends, they are taxed in the hands of shareholders, but with careful planning, these can be allocated to family members in lower tax bands.

3. Inheritance Tax (IHT) planning By giving away non-voting shares early, parents can transfer future growth outside their estates. If those shares are gifted and the founders survive seven years, the value of those shares normally falls outside their taxable estate for IHT purposes.

Because the company structure fixes control and ownership separately, it avoids many of the risks of outright gifting.

4. Flexibility and investment control The FIC can hold a wide range of assets – from property portfolios to listed shares or even private equity. Directors (often family members) can decide how income and gains are reinvested, distributed or lent back to shareholders.

Typical structure

A common setup might look like this:

� The parents form a new limited company and subscribe for voting shares.

� They then introduce capital (either cash or investments) as a loan to the company.

� The company invests the funds.

� Over time, the loan can be repaid to the parents tax-free, while profits accumulate for the benefit of younger shareholders.

Sometimes, the company’s Articles of Association or a shareholders’ agreement will set out clear rules on dividends, share transfers and governance to avoid future family disputes.

Points to consider

� Costs and complexity: An FIC must prepare annual accounts, file returns at Companies House, and meet Corporation Tax and record-keeping requirements.

� Professional advice: Legal, tax and financial planning advice are essential at the outset, especially to draft share classes, shareholder agreements, and loan terms correctly.

� Double taxation: Profits are taxed in the company, and then again when paid out as dividends. Planning is needed to minimise this.

� Disclosure: Details of directors and shareholders appear on the public record, so privacy is reduced compared with a trust.

Summary

A Family Investment Company offers a structured, long-term way to manage and pass on wealth within a family while maintaining control. It combines corporate flexibility with estate planning advantages and can often be more efficient than trusts for families with significant liquid wealth or investment portfolios.

However, it is not suitable for everyone. The success of an FIC depends on careful setup, disciplined management, and ongoing professional oversight to ensure compliance and that it remains aligned with the family’s goals.

If you would like to explore whether a Family Investment Company might suit your circumstances, please call so that we can discuss your options before taking any action.

With the Autumn Budget due on 26 November 2025, speculation is mounting about which taxes could rise and where the Chancellor might look for extra revenue. After ruling out increases in the main rates of income tax, National Insurance and VAT, attention is shifting to the so-called “stealth” areas of the tax system, the ones that can quietly increase tax receipts without grabbing headlines.

Below, we outline the main themes currently circulating and what they could mean for clients.

Property and housing taxes

The property sector is attracting particular attention this year. There is talk of a complete overhaul of Stamp Duty Land Tax (SDLT), possibly replacing it with a more regular, value-based property tax aimed at higher-value homes. Some analysts believe this could be combined with a tightening of reliefs such as the residence nil-rate band, which reduces Inheritance Tax on family homes.

There is also speculation that second homes and buy-to-let properties may face higher charges, either through SDLT reforms or changes to Capital Gains Tax. Meanwhile, parts of the housing market appear to be slowing as buyers and sellers wait to see what the Budget may bring.

Anyone planning a sale or purchase before the end of the year should be aware that rules could change suddenly, particularly if property-related measures are announced to take effect from Budget day.

Wealth and high-earner targeting

Higher earners are another focus of speculation. Reports suggest the government could review how partners in professional practices, such as LLPs, are taxed compared with employed staff. A tightening of the partnership rules, or the removal of certain structuring advantages, could raise additional revenue while being presented as a fairness measure.

Capital Gains, Inheritance Tax and “stealth” changes

Capital Gains Tax (CGT) remains firmly in the spotlight. Aligning CGT rates with income tax would significantly increase the tax payable on the sale of investments and second homes. Other suggestions include reducing the CGT annual exemption or restricting Business Asset Disposal Relief.

Inheritance Tax (IHT) could also be tightened. The government might extend the period before gifts fall outside an estate, reduce reliefs, or lower the private residence nil-rate

band. Similarly, savings/investment allowances such as ISAs could be trimmed or frozen, which would quietly raise additional revenue as inflation erodes their real value.

A difficult fiscal backdrop

Public finances remain stretched. With borrowing high and economic growth subdued, the government is thought to be seeking £20-30 billion in additional tax or spending cuts. Because increasing headline rates would break election promises, the most likely route is through freezes and incremental changes that gradually bring more taxpayers into higher band, the classic “stealth tax” approach.

What this means for clients

For clients holding high-value property, planning asset disposals, or managing large investment portfolios, these possibilities underline the importance of a pre-Budget review. Some may wish to complete disposals under current CGT rates, while others might explore pension top-ups or gifting strategies while existing reliefs remain.

Business owners, directors and professional partners should also monitor how any structural or partnership reforms might affect their remuneration and tax exposure.

Take advice before making changes

It is important to stress that all of these measures are still speculative. Acting on rumour can create unintended tax consequences, particularly where timing and interaction with other reliefs are involved.

If you are considering a disposal, pension contribution, or business restructuring before the Budget, please contact us first. We can help you assess your position, model possible outcomes and ensure that any action taken fits your wider financial and tax plans.

If you feel this article could help a business colleague or family member, please feel free to share it with them.