With the Autumn Budget set for 26 November 2025, UK savers and investors are bracing for changes that could affect everything from tax-free allowances to pension reliefs. While nothing is certain until the Chancellor presents the red box, a number of plausible themes are emerging from fiscal forecasts, political constraints, and economic pressures.
Here’s a breakdown of what UK investors and savers might expect and steps you can take now.
Key constraints shaping the next Budget
Before diving into possible measures, it helps to understand the economic and political backdrop:
- The government faces a fiscal “black hole” of roughly £30 billion, driven by weak growth, high borrowing costs, and tight public finances.
- Labour has committed not to increase income tax, national insurance or VAT for working people, limiting the scope of tax rises on wages.
- To meet fiscal rules (such as reducing debt as a share of GDP), the Chancellor may lean toward raising revenue through wealth, investment and property taxes.
- The Office for Budget Responsibility (OBR) is expected to revise downward growth forecasts, adding pressure to balance the books.
Given these constraints, the red box is likely to include more nuanced rather than sweeping tax changes, particularly those targeted at investors, savers, and households with significant assets.
What savers should watch: ISA & cash limits
ISA reforms & cash vs stocks bias
There is speculation the Chancellor might revisit the structure of ISAs to tilt incentives toward investment rather than holding cash. For example:
- The proportion of the overall ISA allowance that must be held in cash (versus equities/funds) might be limited.
- The government may reduce the attractiveness of Cash ISAs relative to Stocks & Shares ISAs, possibly by narrowing the tax reliefs available for cash holdings.
However, earlier proposals to cut cash ISA allowances have been delayed due to criticism.
What this means for you:
Maximise your ISA allocations under current rules, diversify between cash and growth assets, and monitor whether any cuts to cash-ISA caps are announced.
Taxes on gains, dividends and investments
Capital gains tax (CGT) & allowances
The government may look to raise CGT rates or further reduce the annual exempt amount as a revenue lever.
Some analysts expect alignment of CGT treatment more closely with income tax rates, de-emphasising preferential treatment of gains.
Dividend tax & relief changes
Dividend allowances may be tweaked (reduced or phased out), and rates on dividends could rise, especially for higher earners.
Stamp duty & share incentives
On the upside, there is talk of reducing or removing stamp duty (0.5%) on some share purchases, especially for recent listings, a move aimed to stimulate listings and capital market activity.
Pension & retirement planning under review
Revisiting pension tax reliefs
Some change to pension tax relief is plausible, particularly for higher earners, though this is politically sensitive.
Inheritance tax (IHT) & pension death benefits
Pension pots are already slated to become liable to inheritance tax from April 2027 under previous announcements.
Ahead of this, the government may tighten rules around lifetime gifts, taper reliefs, or gift exemptions to IHT.
Triple lock & state pension
While the triple lock is expected to be preserved, its cost may come under scrutiny; adjustments to future indexation could be floated.
Wealth, property & other “luxury” taxes
Inheritance tax and lifetime giving
The nil-rate band and residence nil rate band may face further freezes, reducing inflation-adjusted value.
Tapering of gift reliefs or capping lifetime gifts exempt from IHT may be options under review.
Council tax / property levies / mansion taxes
Reform of council tax bands, a “mansion tax” or a levy on ultra high-value assets are under discussion as possible revenue-raising options.
Strategic moves for investors and savers now
- Use existing allowances now – ISA, pension, capital gains and dividend allowances should be fully utilised before any reductions bite.
- Review your asset mix – Move cash reserves into more diversified or growth-oriented investments if your risk appetite allows.
- Defer major disposals, if possible – Avoid triggering gains ahead of possible CGT or dividend changes (unless moving into worse tax treatment).
- Gifting / estate planning – Consider making use of current IHT and gifting rules before tighter rules arrive.
- Stay alert to announcements – Monitor official communications and consult a financial planner for personalised strategy adjustments.
Conclusion
For UK savers and investors, the Autumn 2025 Budget is shaping up to be one where small but meaningful shifts could ripple through your portfolios. Rather than drastic overhauls, expect targeted tweaks to ISAs, CGT, inheritance rules, and pension incentives. With the fiscal headwinds looming, it’s wise to plan ahead, use allowances while they last, and stay nimble.
