The Chancellor, Rachel Reeves, will deliver the Autumn Budget on Wednesday 26 November 2025. This will be her first major fiscal statement since Labour’s election win, and it comes at a time of significant financial pressure for the UK economy. With borrowing costs rising and a funding gap estimated at £20 billion to £40 billion, expectations are high for new tax measures that could directly impact families planning for their financial future.
At Generation Financial Planning, we specialise in will writing and estate planning, and we want to highlight the potential changes most relevant to you and your family.
Key Areas to Watch
Inheritance Tax (IHT)
Inheritance Tax reform is firmly on the agenda. Possible measures include:
- A lifetime cap on tax-free gifting.
- Stricter rules around the seven-year rule and taper relief.
- Inclusion of unused pension pots within estates from April 2027.
This could significantly change how families pass on wealth. Early and strategic planning will become even more important.
Pensions
For many, pensions have been a tax-efficient way to leave assets to loved ones. The proposed changes mean that pension assets could soon be subject to IHT, adding new complexity to estate planning.
Gifts and Lifetime Allowances
If a cap on lifetime gifts is introduced, the window for tax-efficient transfers could narrow. Acting now may be beneficial for families considering gifting strategies.
Capital Gains Tax (CGT)
Speculation continues around CGT:
- Possible rate increases.
- Reduced allowances.
- Even the potential inclusion of primary residences in CGT.
For those considering the sale or transfer of assets, timing may be crucial.
Property Tax Reform
Discussions include replacing stamp duty or council tax with an annual property levy. This could affect property-heavy estates, increasing the need for careful liquidity planning.
What This Means for You
These potential reforms underline the importance of reviewing wills, trusts, pensions, and gifting strategies sooner rather than later. Estate planning is no longer just about passing on wealth – it’s about anticipating and adapting to a fast-changing tax environment.
At Generation Financial Planning, we can help you:
- Review your estate and inheritance tax exposure.
- Explore options such as deeds of variation, charitable legacies, and trusts.
- Plan around the potential inclusion of pensions in IHT.
- Consider the timing of asset disposals to mitigate CGT.
- Update wills to reflect property tax changes.
Take Action Before the Budget
With the Autumn Budget fast approaching, now is the time to take proactive steps. By reviewing your estate plan before 26 November, you can position yourself to make the most of today’s allowances and exemptions, and prepare for any changes that lie ahead.
For personalised advice, contact Generation Financial Planning today. We’ll help you navigate the complexities of estate planning and protect your family’s financial future.
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