What Important Announcements to Expect from the Autumn Budget 2025?

Autumn Budget 2025: Proposed Key Changes

1) Stamp Duty

• Since April 2025, Stamp Duty Land Tax in England and Northern Ireland has shifted. The zero-rate threshold for home movers dropped from £250,000 to £125,000, for first time buyers from £425,000 to £300,000, and the surcharge for additional properties rose from 3% to 5%, increasing costs for most buyers. ³

• Proposals now include significant reforms to stamp duty and council tax. ⁴

• One such replacement for this could be a national proportional property tax on homes worth over £500,000, paid by sellers at the point of sale. ⁵

2) Capital Gains Tax (CGT)

• In October 2024, Capital Gains Tax (CGT) rates changed. Increasing the lower rate from 10% to 18% and the higher rate from 20% to 24%. Speculation suggests further hikes or targeted rates for specific assets, like second homes. ⁶

• Another option is to further reduce the annual CGT exemption allowance, the threshold at which gains become taxable. This allowance has already been slashed significantly: it dropped from £12,300 in 2022/23 to £6,000 in 2023/24, and now sits at a mere £3,000.

• This could affect landlords and investors looking to exit or rebalance portfolios

3) Inheritance Tax (IHT)

• Estates with property assets over £325,000 may face tighter rules or reduced reliefs. ⁷

• Early gifting or trust planning might become more common as a result.

4) National Insurance (NI) on Rental Income

• A new NI charge on rental profits is under consideration. ^{8 9}

• If introduced, landlords would pay NI after deducting allowable expenses (e.g. repairs, insurance, agent fees).

• With no offsetting reliefs proposed, this would have a direct impact on net rental income—potentially raising £2 billion for the Treasury but squeezing yields by up to 10%.

5) Housing Supply

• The government aims to build 1.5 million homes, backed by £4.8 billion in funding. ¹⁰

• Long-term, this could ease house prices; short-term, it may increase rental competition if more homes are bought by landlords.

6) Pensions and Savings

• Pension tax relief may be capped to redirect savings into UK businesses and infrastructure. ¹¹

• ISA reforms could encourage investment over cash saving, potentially benefiting property funds.

7) Wealth Tax

• A wealth tax on assets over £10 million could target high-value property portfolios, affecting investor strategies. ¹²