What can businesses expect from the Budget?
Rachel Reeves’ forthcoming Budget, which she will deliver on Wednesday 26th November, is one of the most eagerly expected of recent years. It arrives against a backdrop of political and economic uncertainty, with media pre-messaging shifting several times. In addition to making it harder for business owners and advisers to plan, markets have felt the strain, and the lack of clear policy direction has diminished confidence.
Across the disciplines of Corporate Finance, Tax Advisory, Financial Planning and Restructuring, several themes are already shaping expectations. Each could have a significant effect for business owners, investors and families who are trying to decide whether to hold, sell, or invest.
In this article – with the caveat that anything could change between now and 26th November – we’ll dive into some of those themes.
Income tax and fiscal drag
The Chancellor freezing or even lowering income tax bands remains a possibility. This would effectively be a tax rise by stealth. The debate is whether this approach is more effective than increasing the basic rate of income tax, which appears to be off the table.
There are also wider questions about the effect of fiscal drag on economic growth. These issues matter to business owners who draw income in different ways and to advisers who assist with those decisions.
Capital Gains Tax and wealth taxation
CGT continues to attract attention, with rumours swirling that the Chancellor is considering taxing wealth and income in the same way. For business owners planning to invest or exit, this is an area of pressing concern.
Other aspects under consideration include:
- How aligning CGT and income tax could influence business decisions
- Whether owners should sell or restructure, or continue to hold and take dividends
- The benefits of offshore planning
- Employee Ownership Trusts (EOTs)
Uncertainty around these major influencing factors has already affected the number of deals taking place and the time it takes to finalise them. The relatively late timing of the Budget and the mixed signals in the press have created real challenges.
Last year’s employment tax increase also softened the market, as some businesses became less profitable. Many business owners feel worn down after repeated pressures, including Brexit, Covid, rising energy costs and inflation. They could really use some good news, but will they get it?
Inheritance tax
IHT is another area where owners are looking ahead. There could be changes to Business Property Relief from April 2026, while from April 2027, pensions may be included in estates. These developments will completely change the way families plan for the long term.
There are also whispers that the Chancellor could change the rules around gifting. Currently, the value of gifts is unlimited, and gifts remain part of the estate for 7 years. However, the Budget could introduce a cap on value and extend that period to 10 years. Families may consider insurance products to reduce the risks that come with these changes.
Any changes to IHT will have consequences across Corporate Finance, Tax Advisory, Financial Planning and Restructuring. Some clients have already begun restructuring their businesses to reduce exposure, while others are considering selling.
Pensions
Financial planners are working through the ongoing discussions around tax-free cash. However, the Treasury may step back from making changes here.
There is still speculation around adjustments to income tax relief for people in higher tax brackets, as well as salary sacrifice arrangements, which would affect employees everywhere.
Pensions remain a key part of how many business owners extract funds, so it’s understandable that owners and advisers are anxious, particularly when you factor in possible inheritance tax changes too.
Property taxes
While the government wants to get more people buying and selling properties, it also knows that any changes will affect the wider economy. Therefore, they will tread carefully before making any changes to Stamp Duty Land Tax (SDLT).
Taxing gains on primary residences above certain values is another option Rachel Reeves is thought to be considering. There is a line from here to the much-hyped mansion tax. Would it be something the Chancellor would consider, or would keeping the UK friendly for high-net-worth individuals take precedence?
Questions owners are already asking
Advisers across all disciplines are fielding more and more practical questions relating to what may (or may not) be in the Budget on 26th November.
These include:
- How to respond to the proposed IHT changes before they happen
- What to do with existing pension arrangements
- How potential CGT changes could affect personal and business positions
Whatever happens when Rachel Reeves steps up to the despatch box, at least we’ll have some clarity instead of rumour and counter-rumour. But until then, early preparation and expert advice will help businesses navigate the challenges ahead.
Accentuate by K3 Hub – The Autumn Budget: a comprehensive analysis
Monday 1st December 2025
It’s not too late to register for our lunchtime Autumn Budget webinar taking place on Monday 1st December.
During the session, Jeremy Mindell, Director at Primondell Ltd, will deliver a considered response to the Budget. He’ll explore the implications of the Chancellor’s decisions and discuss her vision for economic stability and growth.
Jeremy will be joined by a panel of experts ready to answer your questions about wealth management, the M&A environment, transactions and exit planning.
Kelly Mitchell
Managing Director, Restructuring & Insolvency
Quantuma
Ian Barton
Managing Director, Corporate Finance
Quantuma
Marcus Pilkington
Chartered Financial Planner
Pareto
Holly Bedford
Managing Director, Tax Advisory
K3 Tax Advisory Limited