Gloucestershire taxpayers face the prospect of paying more as the Budget looms but it’s not all doom and gloom according to Nick Latimer, tax partner in the Cheltenham office of national audit, tax, advisory and consulting firm Crowe UK.
He said: “The freeze on personal allowances and personal tax thresholds has been extended from April 2026 to 2028 – with rumours that it may be extended again until April 2030 – causing further fiscal drag and pulling more people into higher tax bands.”
But he explained that there may be options to reduce the impact.
For example – with couples where one partner earns a higher salary than the other, switching capital between partners can help make the most of personal allowances and basic rate tax bands, reducing the overall amount of tax paid.
For retirees, the state pension continues to grow with the triple lock and will soon exceed the personal tax allowance – meaning pensioners in receipt of a full state pension with no other income will be liable for income tax in the future.
Rumours continue to fly around income tax rates, but the latest briefings/leaks tend to suggest the Chancellor is going to stick to the manifesto commitment not to raise income tax “on working people”.
Latimer said: “However, this could be a prelude to changes in income tax thresholds (so that people pay more tax on lower income levels), or possibly tax increases on those in receipt of investment income, such as dividends, interest or rental income.”
He added that it has been speculated that Capital Gains Tax (CGT) could rise another 4%, on top of last year’s 4% increase, taking it to 28%.
The rate of CGT for business asset disposal relief is also going up from 14% to 18% from April 2026, so completing transactions and triggering gains before any new rates come into place would be worth considering.
He also suggested that those already planning gifts to help mitigate Inheritance Tax should ideally finalise plans before budget day, and ahead of upcoming changes to Business and Agricultural Property Relief from 6 April 2026, those with trading businesses and farms could still consider creating trusts before Sunday 5 April 2026, when the relief will be impacted by the incoming £1 million cap on 100% relief.
He said: “A trust pays a lower rate of IHT on every tenth anniversary of the original settlement, so instead of facing a lump sum on death, the liability can be spread more manageably over several decades.”
For individuals, there are rumours that the Chancellor plans to extend the transfer period for potentially exempt transfers from seven to ten years. So, for gifts of cash or assets transferred to friends and family members, the donor would need to survive for longer in order for the value of those gifts to fall outside their estate for inheritance tax purposes.
Latimer suggested that more significant gifts and asset transfers should be accelerated before the Budget, although there is no guarantee that such action would mitigate the impact of any changes, unless the Chancellor were to introduce a cap on lifetime gifts.
He added: “Crowe’s financial planners say ‘with a high degree of confidence’ that income tax reliefs on pension contributions is unlikely to get better post-Budget.
“There are rumours that the current marginal rate income tax relief for pension contributions (as up to 45%) could be reduced to the basic rate of tax, or possibly a flat rate of 30%. Crowe is therefore encouraging clients to make pension contributions before the budget where appropriate.“
“There is also speculation that the cash ISA contribution allowance may be reduced from £20,000 to £4,000, too.“
Rachel Reeves is delivering the Autumn Budget on Wednesday 26 November 2025, when all will be revealed.
Crowe is hosting a live event at Cheltenham Racecourse, as well as providing a post-budget debrief – for more information, visit https://www.c2sgrowth.com/events/live-budget-event/
To see how Crowe can help with tax planning ahead of the budget, visit crowe.com/uk, or contact Nick Latimer by emailing nick.latimer@crowe.co.uk or calling 01242 234421.
Contact:
Andy Skinner at ASAP PR – 07990 978257
Notes to Editors:
About us
Crowe UK is a leading audit, tax, advisory and consulting firm with a national presence that is complemented by our local expertise and international reach. We are an independent member of Crowe Global, one of the top 10 accounting networks in the world. With exceptional knowledge of the business environment, our professionals share one commitment, to deliver excellence.
We are trusted by thousands of clients for our specialist advice, our ability to make smart decisions and our readiness to provide lasting value. Our broad technical expertise and deep market knowledge means we are well placed to offer insight and pragmatic advice to all the organisations and individuals with whom we work. Close working relationships are at the heart of our effective service delivery.
Crowe has UK offices based in Bristol, Cheltenham, Kent, London, Manchester, Midlands and Thames Valley. For more information, please visit: www.crowe.co.uk
Follow Crowe UK on LinkedIn
Follow Crowe UK on X @CroweUK
Crowe industry recognition
- Top charity auditor for 16 consecutive years (Charity Finance Audit Survey, 2009 – 2024)
- Risk Consultancy of the Year 2024 for the sixth consecutive year (InsuranceERM)
- UK Member of one of the top 10 accounting networks in the world (International Accounting Bulletin World Survey 2022)
- Awarded Silver in the 2022 Citywealth Brand Management and Reputation awards – Best Overall Marketing Campaign category for Your Life Builder
- Awarded Silver in the 2022 Citywealth Magic Circle awards
- Ranked 3rd in the AIM auditors ranking by number of audits (AIM Advisers Rankings Guide, November 2024)
- 9th largest audit firm in the UK (FRC Key Facts and Trends in the Accountancy Profession Figure 33: Total fee income of UK audit firms that audit PIEs, October 2025)
