Autumn Budget 2025: “Death by a thousand leaks”

It is a tale as old as time. We have had weeks of conjecture about the potential seismic changes to the UK tax landscape. As usual there were leaks in the lead up to this budget. Those leaks talked of potential changes to NI contributions for LLPs, vastly higher income tax rates, and the introduction of a “wealth tax”. What the government has delivered is a budget that has avoided any huge controversial changes, but still delivers one of the biggest tax hauls since 2010. This has come via several small and calculated tax rises aimed at bringing in more tax across the board.

Rachel Reeves had probably hoped that by rowing back from any headline grabbing tax increases she could create an air of positivity, which would be echoed in predictions for economic growth over the next few years. However, the furore caused by the OBR’s unfortunate (but hilarious) leak hours before the budget has overshadowed the budget somewhat, and left the government looking completely disorganised (although I thought RR dealt with the constant embarrassing cackling from the opposition benches relatively well!)

There were very few changes to inheritance tax or the gifting rules, other than further freezes to the nil rate bands – perhaps apt for the time of year as temperatures plunge. Importantly, there hasn’t been any back down in relation to BPR/APR, or pensions falling into IHT.

Imagine you have a higher than average value home with a big mortgage, perhaps a second property through marriage, you send your children to private school (in an electric car) and try to save us much as you can into your pension to enable you to stop working at a sensible age. You are going to be hit from every angle with the new “mansion tax”; an increase on income tax from rental property; VAT on school fees; an electric car tax and NI on pension contributions. There will be some in this position that don’t consider themselves as being wealthy – from a cash flow perspective at least. Those professionals may well find the lure of low tax foreign jurisdictions hard to refuse.

Undoubtedly pension advisors will have a busy few years. You have to wonder if the 30-50 year olds of today will have any significant pension to fall back on at all by the time they retire. They may have to think of other options for retirement.