News
Rumours, Speculation, and Sensible Planning: What We’re Watching Ahead of the Autumn Budget 2025
03 Oct 2025
By James Clark, Tax Partner
As tax advisors, we’re not ones for gossip, but when it comes to the Autumn Budget 2025, we make an exception.
With the next UK Budget set for November, the rumour mill is in full swing. From potential changes to lifetime gifting rules to tweaks in inheritance tax reliefs, there’s a lot of chatter about what the Chancellor might pull out of the red box this time.
We don’t have a crystal ball (sadly), and nothing is set in stone until the announcements are made, but here’s a round-up of the key topics being talked about and what we think clients across Shropshire, Cheshire and Wales might want to keep in mind as we head into budget season.
So, what’s being talked about?
1. Lifetime gifting – changes to the 7-year rule?
One of the biggest talking points right now is around lifetime gifts – those sums of money or assets you might give to children, grandchildren or others during your lifetime.
Currently, gifts made more than seven years before your death are usually exempt from Inheritance Tax (IHT). This rule has been in place for years – and some say it’s due for a shake-up.
What’s being suggested?
- A possible cap on the total amount that can be gifted IHT-free during your lifetime
- Changes to the taper relief rules (which reduce the tax owed if you die between 3–7 years after giving a gift)
- Reducing or extending the seven-year window
Nothing confirmed, but if you’re planning to make significant gifts in the next couple of years, it may be wise to start the conversation sooner rather than later.
2. Inheritance Tax: reliefs under review
Over the past year, the government has already announced reforms to Agricultural Property Relief and Business Property Relief, due to take effect from April 2026.
The talk now is about whether these reliefs could be tightened further.
Why does this matter?
Many families across our region rely on these reliefs when passing on farms or family businesses. Even small changes in qualification criteria or relief percentages could have a substantial impact on the next generation’s tax position.
We’ll be keeping a very close eye on this one, especially for our clients in the farming and rural business communities.
3. Pensions: no longer out of the IHT net?
Up until recently, many people viewed pensions as a handy way to pass wealth down the generations tax-efficiently. But the government has started shifting the rules.
From April 2027, most unused pensions and death benefits will form part of your estate for inheritance tax purposes. And there’s speculation that the Treasury might go even further.
What should you do?
Don’t panic. Just make sure your pension nominations, estate plans, and financial intentions are aligned. We’re helping clients think about pensions not just as retirement tools, but as part of a wider IHT strategy.
4. Thresholds frozen, values rising
This one’s less rumour and more reality. The IHT nil-rate band (£325,000) and residence nil-rate band (£175,000) have both been frozen until 2030.
Meanwhile, property prices and asset values continue to rise, especially in areas like Shropshire and Cheshire.
That means more and more estates are creeping over the thresholds, even if they wouldn’t have been caught a few years ago.
Translation? You might be in the IHT zone without realising it.
So what does all this mean?
In short: change might be coming. Or it might not. But either way, being ahead of the curve is rarely a bad idea when it comes to tax planning. We’re not advising anyone to rush out and gift the farm (literally or figuratively).
But it’s a good time to:
- Review any past gifts you’ve made
- Understand how close your estate might be to the current thresholds
- Think about your longer-term intentions for passing on wealth
- Chat with your advisor if you’ve been considering making a significant gift “at some point soon”
What we’re doing
At our firm, we’re watching developments closely, but we’re not jumping at shadows. We’ll review the Autumn Budget carefully when it’s announced and offer tailored guidance once the details are confirmed.
To help you understand what the Budget means for you and your business, we’re hosting a series of local seminars across Shrewsbury, Northwich, Newtown & Wrexham at the start of December 2025.
These sessions will cover the key announcements and their impact, with practical advice. Until then, we’re helping clients prepare by reviewing existing plans, clarifying intentions, and, where appropriate, making modest adjustments to ensure flexibility.
Final thoughts
It’s tempting to see every Budget as a moment of upheaval, but the truth is, good planning rarely needs to panic.
If the rules change, we’ll adapt. If they don’t, you’ve simply taken a sensible opportunity to review your finances.
Either way, now is the perfect time to get informed. Join us at one of our Autumn Budget 2025 seminars to hear what the announcements mean for you and your business, and enjoy breakfast and networking with other local business owners.
