Tom Biggs ACA CTA summarises how a rising tax burden could potentially impact on your earnings, estate planning, and wealth.<\/h2>\n
The Autumn Budget 2025<\/span><\/a><\/span> shaped up as one of the most pivotal in recent years. The focus was on tackling wealth inequality whilst also ensuring the stability of the nation’s finances for the bond markets.\u00a0<\/p>\n Chancellor Rachel Reeves, has unveiled a series of tax rises<\/span> and changes that will have a significant impact on individuals and businesses alike. In fact, there were \u00a326bn worth of announced tax rises and combined with the measures from last year’s budget mean an additional \u00a360.3bn of\u00a0taxes on British taxpayers<\/span> by the end of the decade according to the Tax Payers’ Alliance<\/span>. Much of the spending and borrowing by the government is immediate with the tax rises taking place later in this Parliament in part to\u00a0fund it all.<\/p>\n Ultimately this means the UK tax burden is projected to hit an all time high at 38.3% of GDP! In this blog post we break down the key announcements<\/span>, and what they’re likely to mean for you so that by reading this you’ll then be well equipped to understand:<\/p>\n Of note, the planning and consideration sections include our generic recommendations but importantly individual circumstances need to be reviewed carefully prior to undertaking any tax planning. This is why we recommend you speak to an advisor about your personal and business finances before taking any action.\u00a0\u00a0 \u00a0<\/p>\n <\/p>\n Announced as a solution to a long-standing source of wealth inequality, a High Value Council Tax Surcharge<\/span> will be applied in England from 2028. If you own a home worth more than \u00a32m you will likely have to pay an annual charge<\/span> on top of your existing Council Tax bill.<\/p>\n There will be 4 Council Tax bands for the mansion tax and homes will be classified based on 2026 valuations. The lowest band will be for properties in the \u00a32m – \u00a32.5m range incurring a \u00a32,500 annual charge. The highest band will be for homes worth more than \u00a35m and a \u00a37,500 fee each year. The middle bands have not yet been revealed.\u00a0<\/p>\n The Chancellor stated this charge would apply to less than 1% of all properties. A deferral scheme<\/span> will be made available if you’re unable to pay the charge. This would be particularly relevant to those in circumstances where they’ve bought homes many years ago that potentially have soared in value since, referred to as people who became asset rich but cash poor.<\/p>\n Planning and consideration:<\/em> If you suspect your property is worth close to \u00a32m, consider getting a valuation to determine if you fall into the mansion tax category. If you do, consider whether selling, downsizing, or restructuring assets to reduce your property’s value could be viable.<\/p>\n <\/p>\n\n
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<\/a><\/span><\/span><\/p>\n1. The ‘mansion’ tax<\/h2>\n
2. Freezes to Income Tax thresholds<\/h2>\n