sm130 - Flipbook - Page 8
Autumn Budget 2026
Autumn Budget
2026 tax watch
With the main taxes ruled out, attention is shifting to other revenue generators
As Chancellor John Healey
delivers his first Autumn
Budget on 28 October 2026,
the government faces a difficult
balancing act. Prime Minister
Andy Burnham has committed
to Labour's manifesto pledge not
to raise the main rates of Income
Tax, National Insurance or VAT.
However, the government also faces
significant spending pressures and
limited scope under its fiscal rules.
T
hat does not necessarily mean
Property and wealth in focus
taxpayers will avoid higher taxes. The
Property taxation could also feature in the
Chancellor could consider wealth,
Chancellor's thinking. Speculation has centred on
investments, property, pensions and
changes affecting higher-value properties, although
other sources of revenue. Between now and Budget
the government has denied reports that it plans
day, there is likely to be no shortage of predictions
to replace Council Tax and stamp duty with a land
about what might happen. Much of the speculation,
value tax in the immediate Budget.
however, remains unconfirmed.
Capital gains could come under scrutiny
for a new wealth tax. Inheritance Tax (IHT) could
Capital Gains Tax (CGT) is one area attracting
remain another area to watch, particularly as most
particular attention. Possible changes could include
unused pension funds are due to come within the
raising CGT rates to bring them closer to Income
IHT regime from April 2027.
Tax rates, or altering the reliefs and allowances
available to investors and business owners. Such
Quiet impact of frozen thresholds
measures could affect people selling investments,
Tax rises do not necessarily require an increase in
second homes or businesses.
headline rates. Keeping allowances and thresholds
The annual CGT-exempt amount is already
08
A broader tax on wealth has also been discussed,
although there is currently no confirmed proposal
frozen while wages and asset values rise can
modest, so more investors could face tax on sales
gradually increase the amount people pay through
outside tax-efficient wrappers. Any further changes
fiscal drag.
could make the timing of disposals and the use of
For 2026/27, the Personal Allowance remains at
Individual Savings Accounts (ISAs) and pensions
£12,570, while the higher rate threshold is £50,270
increasingly important.
in England, Wales and Northern Ireland. As incomes
