What can we expect in the Autumn Budget?

The UK is awaiting a new Prime Minister. Andy Burnham is due to enter Number 10 on Monday following an unopposed race to replace Sir Keir Starmer.

All eyes are now on the Autumn Budget, which is expected to take place in October. Little has been confirmed about what it will contain, but a handful of taxes are in the spotlight. Meanwhile, savers and investors are awaiting several confirmed changes announced by the previous Labour government.

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What we know already 

Some major changes to saving, investing and passing on wealth were announced in last year’s Autumn Budget - and the one before that. The new rules are due to come into force in 2027 and 2028. 

• IHT on pensions. From 6 April 2027, most unused pensions will be included in your estate for inheritance tax (IHT) purposes. This marks a major shift in retirement and estate planning, given pensions have long been one of the most tax-efficient ways to pass on wealth. The change was announced in the Autumn Budget 2024.

Watch: 9 ways to protect your pension from IHT changes

• ISA reform. From 6 April 2027, the cash ISA allowance is due to fall from £20,000 to £12,000 for under-65s. The overall ISA allowance will remain at £20,000. To avoid people bypassing the new cap, uninvested cash in a stocks & shares ISA will be taxed at 22% and investors will be unable to hold 100% of their investment portfolio in money market funds. These changes were announced in the Autumn Budget 2025.

Read: How ISAs will change in 2027

• High Value Council Tax Surcharge. A new surcharge for residential properties in England worth more than £2m is due to take effect from April 2028. The annual charge is expected to range from £2,500 to £7,000, depending on the property's value. It was announced in the Autumn Budget 2025.

Areas to watch

The government has not published its Budget plans and no further tax changes have been confirmed. However, several areas have featured in speeches and wider policy discussions.

• Land and property tax. Mr Burnham has previously argued that the UK's property tax system is outdated and has expressed support for a land value tax. Unlike council tax or stamp duty, this tax would be levied on the value of the land itself, rather than the buildings standing on it. No detailed proposal has been published and it is unclear whether any reforms would feature in this year's Budget.
• CGT changes. There has been discussion about whether capital gains should be taxed more like to earnings. While no specific policy has been announced, capital gains tax (CGT) is one of several areas commentators have highlighted as a possible candidate for reform.
• Inheritance tax. Mr Burnham has previously spoken about reforming inheritance tax, (IHT) including replacing the current system with a broader levy on estates. However, no detailed proposals have been published and it is not known whether inheritance tax will feature in the Budget.
• Income tax, VAT and National Insurance. The government has indicated it does not intend to increase the main rates of income tax, VAT or National Insurance, although - as with all Budget measures - no announcements have yet been made.
• Triple lock. The State Pension is unlikely to see major changes in this year's Budget. Mr Burnham has publicly pledged to maintain the "triple lock", under which the State Pension rises each year by the highest of inflation, average earnings growth or 2.5%. 

Bigger-than-usual Budget?

The Autumn Budget is expected to take place in October. Some reports have suggested it could be combined with a wider spending review, potentially making it a more significant event than usual. However, no timetable has been confirmed and it remains unclear whether such large event could be organised by late this year.

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Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing into a fund, please read the relevant key information document which contains important information about the fund. Eligibility to invest in a SIPP or ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a SIPP will not normally be possible until you reach age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.