Over the past few months the UK financial press has been busy predicting what may appear in the Autumn Budget. While nothing is confirmed until the Chancellor stands up at the despatch box, the direction of travel being trailed would point to targeted revenue-raisers rather than broad-brush cuts. Below I’ve summarised the key ideas being floated, and what they could mean for individuals, landlords and business owners if implemented.
By Chris Davies – Director
1) Dividends
Several outlets suggest the dividend regime could tighten. For example, reducing or scrapping the small annual allowance and/or nudging up the higher/top rates.
If implemented: owner-managers could see higher costs when extracting profits from their companies; some may tilt towards salary and pension contributions instead of dividends.
2) Capital Gains Tax (CGT)
Commentary ranges from modest rate rises and allowance tweaks through to more radical options (e.g., asset-specific rates or thresholds).
If implemented: expect a flurry of “crystallisations” ahead of the change, followed by a possible slowdown in disposals as investors defer gains.
3) Inheritance Tax (IHT)
May include a lifetime cap on tax-free gifts, adjustments to reliefs, and potential tweaks to the residence nil-rate band.
If implemented: more estates could be brought into scope; families may accelerate lifetime planning and will need closer record-keeping.
4) Pensions and salary sacrifice
Reports point to possible reform of higher-rate pension tax relief (e.g., moving towards a single flat rate) and tighter rules around certain salary-sacrifice benefits.
If implemented: higher earners may see less uplift from pension contributions and could diversify towards ISAs or taxable investments.
5) ISAs
The press has floated ISA rule changes, including shaping allowances to encourage more equity investment.
If implemented: could alter the balance between cash and stocks & shares ISAs without materially changing the overall tax shelter.
6) Property & landlords
Speculation includes council tax revaluation, SDLT redesign (occasionally even “seller SDLT”), landlord-focused measures and other recurring property levies.
If implemented: transaction and holding costs might rise; some of the cost could pass through into rents; prime-end activity may cool.
Who could be affected — and how
Households & investors
- Dividend and CGT changes would largely fall on those with significant portfolios or second properties.
- Pension reforms could reduce the after-tax benefit for higher-rate contributors, increasing the appeal of ISAs.
- Ongoing threshold freezes (fiscal drag) continue to pull more people into higher bands, even if rates don’t change.
SMEs & owner-managers
- If dividend rates rise or allowances shrink, the total tax cost of profit extraction could increase. Expect more salary/pension mixes, timing considerations, and attention to director loan accounts.
- Any ISA or CGT shift can affect funding markets and investor appetite, particularly for early-stage and AIM-type businesses.
Property market
- Measures aimed at landlords or transaction taxes may soften activity at the margin and could nudge rents higher where supply is tight.
- If SDLT or council-tax reforms appear, they may change holding vs. moving incentives.
How UHY Ross Brooke can help
We’re already modelling the most likely scenarios so you don’t have to. If you’d like a calm, numbers-first review of how potential Autumn measures could affect you, your family or your business, get in touch with the UHY Ross Brooke team. We can:
- run extraction and remuneration scenarios for owner-managers;
- optimise CGT and IHT positioning;
- review pension contributions and ISA allocations;
- stress-test buy-to-let portfolios;
- prepare pre- and post-Budget action lists tailored to you.
Contact us to book a no-obligation consultation with your nearest UHY Ross Brooke office.
