These Changes Could Make Autumn Budget 2025 “Taxing”

With the Autumn Budget 2025 now officially scheduled for 26 November, all eyes are on Chancellor Rachel Reeves and how she plans to tackle the UK’s financial pressures.

The Government faces a difficult task. The country’s borrowing has reached its highest level in five years and economic growth remains sluggish. To fill this “fiscal black hole,” Reeves is reportedly considering over 100 potential tax changes, from income tax adjustments to new levies on property, pensions and investment income.

Our article today breaks down everything property owners, landlords and ordinary taxpayers need to know about the possible tax changes in the upcoming Budget.

When Will the Autumn Budget 2025 Be Delivered?

The 2025 Budget is confirmed for 26 November 2025, slightly later than last year’s October date.

Traditionally, the Chancellor delivers the Budget statement after Prime Minister’s Questions, at around 12:30 pm.

Before that, the Office for Budget Responsibility (OBR) must receive at least 10 weeks’ notice to prepare its official forecasts. This means the budget details are already being finalised within the Treasury.

Is the Government Planning Tax Hikes?

Government borrowing stood at £20.2 billion in September 2025, the highest since the COVID-19 pandemic. There have also been reports of a £50 billion hole in public finances.

This, coupled with the Chancellor’s publicly expressed belief that “those with the broadest shoulders should contribute more,” means the government is likely to target asset-rich individuals rather than increase taxes directly on wages. But some indirect rises could still affect working households.

What we can say for certain is that, given how things look right now, tax rises of some form are almost inevitable.

Could Income Tax Rates Go Up?

One of the most talked-about possibilities is a rise in Income Tax.

For decades, no government has dared to increase the basic rate, but that could now change.

Some reports suggest a 1p rise in Income Tax could raise around £8 billion a year. Another option being considered is cutting National Insurance by 2p while raising Income Tax by 2p. This would keep take-home pay relatively similar for employees but extend the tax burden to pensioners, landlords and the self-employed who do not pay National Insurance.

Such a move would allow the government to claim that “working people” aren’t worse off, while still raising substantial revenue from a broader base.

Frozen Tax Bands: The “Stealth Tax” Continues

The freeze on Income Tax thresholds, originally introduced by the Conservative government, could be extended beyond 2028.

This means that even if the headline tax rates stay the same, many people will still end up paying more tax over time as their salaries increase, a phenomenon known as fiscal drag.

For landlords, business owners and employees, this means more income could be pulled into higher tax bands, gradually increasing the tax burden without any official rate rise.

Will Inheritance Tax Be Modified?

Inheritance Tax (IHT) remains one of the most politically sensitive areas in the country but still, one area that the government could quietly reshape.

Currently, estates worth up to £325,000 (or up to £500,000 including the main residence nil-rate band) are exempt. Anything above this is taxed at 40%.

Reports suggest the government could extend the freeze on IHT thresholds until 2030, meaning more families will fall into the IHT net as property values rise.

There’s also talk of removing the residence nil-rate band, which currently allows homeowners to pass more property wealth tax-free to their children. Removing this could particularly affect middle- and upper-middle-class families in the South East, where property prices are higher.

Another idea being discussed is the introduction of a lifetime cap on tax-free gifts, which would limit how much wealth can be passed on without triggering tax during one’s lifetime.

Changes to Property Taxes: Mansion Tax, Stamp Duty Elimination & Land Value Tax

For property owners and investors, several proposals, if implemented by the Autumn Budget 2025, could reshape how property is taxed in the UK.

Will National Insurance Burden Landlords?

Another major change that could impact the property sector is the extension of National Insurance (NI) to rental income.

At present, landlords do not pay NI on their property profits. However, the government is exploring whether NI could apply to rental earnings, potentially raising around £2 billion per year.

If implemented, this would particularly affect individual landlords holding properties in their own names. Those operating through limited companies (SPVs) would likely remain unaffected, further strengthening the case for incorporating property portfolios.

Pensions & ISAs: Subtle but Significant Tweaks

The government is unlikely to make drastic changes to pensions. Cutting the 25% tax-free lump sum or scrapping the triple lock would be deeply unpopular.

However, there is speculation about reducing higher-rate tax relief on pension contributions and reforming salary sacrifice schemes, which currently provide tax-efficient ways to save for retirement.

Similarly, cash ISA allowances, currently at £20,000 per year, could be reduced to between £10,000 and £12,000, pushing savers towards riskier stock market investments.

Wealth Taxes Remain Unlikely Though

Despite pressure from some MPs, a formal Wealth Tax remains unlikely. The Chancellor has reportedly ruled it out as a “non-starter,” fearing it could deter investment and damage the UK’s image as a business-friendly economy.

Instead, she is said to be focusing on targeted tax increases on assets, income and property. These will effectively achieve the same results, but she won’t have to label it a “Wealth Tax.”

What this Means for Landlords, Property Owners & Property Investors

For landlords, property owners and property investors, the 2025 Budget could mark the beginning of a new tax landscape.

Those holding assets in their own name may see rising effective tax rates through a combination of fiscal drag, higher property levies and potential NI changes.

On the other hand, investors operating through Limited Companies (SPVs) could enjoy relatively more flexibility and stability, especially if corporate tax rules remain unchanged.

The key takeaway? Tax planning and structural decisions will matter more than ever.

Conclusion

The Autumn Budget 2025 is shaping up to be a pivotal moment for taxpayers, property owners and landlords across the UK. With the country facing high borrowing and sluggish economic growth, a mix of Income Tax changes, property levies, Inheritance tax adjustments and subtle tweaks to pensions and ISAs appears likely.

For property investors and landlords, understanding the potential impact on rental income, property ownership structures and long-term wealth planning will be crucial. Those holding assets in their own name could face higher effective tax rates, while using Limited Companies (SPVs) may provide greater flexibility and tax efficiency.

Ultimately, careful planning will be essential to navigate this evolving landscape. Staying informed, reviewing your property portfolio and seeking professional guidance can help ensure you are prepared for any changes that the Autumn Budget may bring.