With the Autumn Budget now just two weeks away, speculation is building around what Chancellor Rachel Reeves will announce on 26 November. For those considering their financial future, from managing retirement income to passing on wealth to the next generation, this Budget could bring meaningful change.

The government is facing a significant fiscal gap and has pledged not to raise headline rates of income tax, VAT or National Insurance. That commitment narrows its options and increases the likelihood that new measures will focus on areas such as inheritance tax, capital gains, pensions and property.

At Clarke & Wright, we are closely tracking these developments to help clients prepare, act where appropriate, and avoid being caught off guard by sudden changes.

1. Inheritance Tax: More Estates at Risk

Inheritance Tax (IHT) continues to attract attention as the number of estates affected by it rises. The nil-rate band (£325,000) and residence nil-rate band (£175,000) have been frozen for years while house prices and asset values have continued to climb. As a result, many families who never expected to face IHT are finding themselves within its scope.

There is growing speculation that the Chancellor could look to modernise gifting rules as part of broader reform. Proposals include introducing a lifetime cap on tax-free gifts or revising the seven-year rule that determines when gifts fall outside of the estate.

The £3,000 annual gifting allowance, unchanged since the 1980s, could also be reviewed. If it had risen with inflation, it would now exceed £12,000. Even a modest uplift would better reflect modern financial realities and help families support children and grandchildren with education or housing costs.

Anyone reviewing their estate planning or contemplating gifts might consider doing so ahead of the Budget to take advantage of current allowances.

2. Pensions: Reforms Could Reshape Planning

While the Treasury has confirmed that the 25% tax-free lump sum will remain unchanged this year, other aspects of pension taxation are under firm review.

From April 2027, pension funds will be included in the taxable estate for IHT purposes. This is a significant shift for many retirees. Previously, pensions were often treated as one of the most efficient ways to pass on wealth. That advantage may soon diminish, making it crucial to review pension structures, beneficiary nominations and how these integrate with broader estate plans.

There is also speculation that tax relief on contributions and National Insurance exemptions for salary sacrifice schemes could face adjustment in future Budgets. Even if such changes are not announced this month, the direction of travel points towards tighter reliefs and greater complexity.

For those nearing or in retirement, now is the time to check pension documentation, confirm beneficiary details and understand how pensions fit within overall estate and inheritance strategies.

3. Capital Gains Tax and Property: Possible Realignment Ahead

Capital Gains Tax (CGT) may also be under review, with discussions about aligning rates with income tax or reducing the annual exempt amount, currently set at £3,000.

Property owners should pay particular attention. There are early indications that the government could introduce a new approach to property taxation, such as an annual property levy or applying CGT to higher-value main residences.

These potential reforms could have far-reaching effects on property portfolios and long-term family wealth. Anyone considering selling, gifting or restructuring property holdings may wish to review timing carefully in light of Budget speculation.

4. Wills, Trusts and Powers of Attorney: Time for a Review

Potential changes to inheritance and gifting rules make this an ideal moment to revisit wills, trusts and lasting powers of attorney (LPAs).

Trusts remain a valuable tool for protecting assets and providing for future generations; however, any new restrictions on wealth transfers could impact how they are utilised. Wills and LPAs drafted several years ago may also need to be updated to reflect new financial circumstances or family dynamics.

At Clarke & Wright, we recommend that all clients conduct a pre-Budget review to ensure their documents remain effective and aligned with current law. Even if no immediate legislative change occurs, this process ensures that your plans are clear, compliant and ready for whatever comes next.

5. ISAs and Savings: A Shift Toward Investment

The Chancellor is also reported to be considering changes to Individual Savings Accounts (ISAs), including the possibility of reducing cash ISA allowances or encouraging more investment in UK companies.

While ISAs remain one of the most accessible ways to save tax efficiently, their structure could evolve in ways that impact retirees who rely on them for income. Maintaining a balanced approach between cash and investments will be key to achieving flexibility and security.

What You Can Do Now

The two weeks preceding the Budget offer an important opportunity to ensure your arrangements are in order. Steps to consider include:

• Reviewing wills, LPAs and trusts to ensure they reflect your current intentions.

• Making use of existing annual gifting allowances before any rule changes.

• Reviewing your pension structure, including how it will be treated under the new IHT rules.

• Considering the timing of property or investment disposals.

• Checking your ISA and savings strategy to ensure it remains well-balanced.

Taking action now could preserve existing tax advantages and help you adapt more smoothly to any post-Budget changes.

Looking Ahead

This year’s Autumn Budget is expected to focus on broadening the tax base rather than increasing major tax rates. That means individuals with accumulated wealth, property or pensions are likely to see the most significant impact.

Clarke & Wright will closely monitor the announcement on 26 November and publish a detailed summary of confirmed measures and their practical implications for estate planning, inheritance tax, pensions, and property.

If you would like to discuss your situation ahead of the Budget, our team is available to review your current arrangements and ensure your plans remain robust and flexible.

N.B. This document is for information only and does not constitute tax advice.