Autumn Budget 2025

HM Treasury has announced that the Autumn Budget will take place on 26 November 2025, and it is expected that there will be tax rises.

For business owners considering the sale of their business, either within the next couple of months or next year or so, one of the most significant tax considerations is what is going to happen to the rate of Capital Gains Tax (CGT) and Business Asset Disposal Relief (BADR).

The government has pledged not to raise Income Tax, National Insurance, or VAT for working people, but other areas of the tax system may be targeted.

We already know following last Autumn’s Budget that from April 2026, BADR is changing, with the rate of CGT increasing from 14% to 18% on the sale of qualifying business assets.

There is often a lot of speculation in the lead up to a Budget and the next two months will be no different.

The Chancellor’s communicated commitment to keeping “a tight grip on public finances” and preserving existing fiscal rules means that some form of rise in tax is inevitable somewhere.

What tax changes might we see?

Irrespective of this upcoming Budget we know that the rate of CGT on the sale of assets qualifying for BADR will increase in April 2026. The scope and value of the relief could be tightened further, although some would argue that this would not assist the Chanceller’s aim of unlocking growth.

The rumour-mill is spinning, and we summarise below some of the other changes which may be set out in this Autumn’s Budget:

-  Changing the inheritance tax (IHT) rules on lifetime gifting to introduce a cap or change the taper rate or extending the IHT nil rate band.

-   Restricting the benefits of salary sacrifice for employee pension contributions.

-    Extending the freeze on Income Tax thresholds (currently in place until 2027/2028).

-    Property-related taxes, such as changing the rules around CGT for private residences or changing council tax bands.

-    Increasing or changing the ‘sin’ taxes, such as on tobacco, alcohol and the gambling levy.

-    Changes to customs duty and the limits on low value consignments.

For those contemplating business sales there is no crystal ball (unfortunately) as to what further changes there may be to the rates and reliefs available. All you can do is make sure you have your business in a saleable condition for when the opportunity arises to sell. 

For businesses and households alike, the November budget promises to be one of the most consequential in years; setting the tone for Labour’s economic credibility after a difficult first year.

If you are contemplating selling your business prior to the known rate increases in April 2026 then get in touch with us to see how we can support you.