2025 UK Budget – Autumn

The Autumn Budget is coming soon, and with a new government in place, some changes could be on the way. There’s already talk about possible tax increases for higher earners and tweaks to pension rules.

Here’s a quick look at what might be coming.

Income Tax Rates May Rise

There’s talk that the 40% and 45% income tax rates could be increased. These rates are for higher earners. Labour said they wouldn’t raise income tax for “working people,” but there could still be changes for the highest earners to bring in more money.

Pension Tax-Free Lump Sum May Be Capped

Currently, 25% of your pension can be taken as a tax-free lump sum at retirement. However, this could be limited to about £75,000 and £100,000. Withdrawals above this limit may be taxed as regular income. This means people with bigger pensions could end up paying more tax.

If you have a higher income or a large pension, now’s a good time to review your plans to help reduce your tax if changes occur.

Working abroad or owning property in multiple countries (such as, UK and Australia) can make taxes complicated. We’re here to guide you through it. If you have questions, please feel free to contact us at info@ukautax.com.