When Chancellor John Healey delivers the Autumn Budget on 28 October, you may be among the many asking: How will it affect me and my finances?

As the first major fiscal announcement under Prime Minister Andy Burnham, the speculation ahead of the event is greater than ever.
 
Tasked with protecting Britain’s economic position against a backdrop of soaring government borrowing, both the chancellor and the prime minister have said they will honour Labour’s manifesto, making Income Tax, National Insurance, and VAT no-go areas.

After news that the State Pension triple lock will be adjusted to remove the link to annual wage growth from April 2030 , potentially saving £15 billion a year by 2039/40, what else might John Healey be considering as he attempts to balance the books? [1]

 1. Pension tax relief and tax-free lump sums could be reduced

Pension tax relief isn’t new to the tax-saving agenda – indeed last year, many expected then-Chancellor Rachel Reeves to either axe the 25% tax-free lump sum or reduce tax relief on contributions.

So far left untouched, the arguments for reducing or abolishing the amount of tax-free cash were so convincing that even some policy experts took precautionary measures by withdrawing funds from their pensions before the 2025 Budget. [2]
 
Despite vocal opposition, reducing tax incentives surrounding retirement saving offers Healey two viable targets.

 2. Capital Gains Tax could be increased to align more closely with Income Tax

Burnham has been very vocal about his intent to tax wealth over labour, so increasing Capital Gains Tax (CGT) is one prediction worth heeding.

In the current 2026/27 tax year, you have an Annual Exempt Amount of £3,000. Any profits you make in excess of this sum may incur CGT.
 
While the amount you pay is already determined by your marginal rate of tax – with basic-rate taxpayers paying 18% and higher- and additional-rate taxpayers paying 24% – Healey may tighten or entirely close the gap by aligning CGT to match your marginal rate of Income Tax.

However, according to analysis, increasing CGT to 40% for higher-rate taxpayers and 45% for additional-rate taxpayers could deter people from selling assets, which could result in billions of lost revenue, effectively reducing rather than increasing the amount of taxable sales. [3]
 
That said, it may still be an area under consideration. If CGT is increased, you may need to plan ahead to ensure you make full use of any allowable losses, while also paying attention to how and when you sell assets.

3. A tax on wealth could be a likely prospect 

It’s no secret that Andy Burnham believes Britain’s wealthiest should pay their “fair share”.

Oxfam and Tax Justice UK have both called on Labour to introduce a 2% tax on those with net assets worth £10 million or more.
 
If imposed, estimates suggest this could raise approximately £24 billion a year. [4]
 
In conversation with Gary Lineker (one of many millionaires publicly asking to be taxed more), Andy Burnham didn’t directly answer questions about taxing the super-rich, but did indicate that wealthy individuals should expect to be asked to “pay a little more”. [5]
 
In practice, imposing a wealth tax is likely to present difficulties – the administrative burden could be costly, and it may drive more millionaires to leave Britain.

If in doubt, stay calm and speak to a professional

These are just three of the tax changes that could be under consideration. While we may see well-timed “leaks” ahead of the Budget speech, we can’t know for sure what will be announced.

In the event that Healey leaves tax on earnings alone, and instead focuses on taxing assets, you may need to review your financial plan.

Until Healey delivers the Budget, what you read is only speculation – acting on what might be announced could lead to costly mistakes you come to regret.
 
But don’t panic – it would be unusual for any significant changes to be introduced without prior warning.
 
Bringing pensions into scope for Inheritance Tax (IHT) is a prime example. This change was announced in the 2024 Autumn Budget by then-Chancellor Rachel Reeves. In total, families will have had two-and-a-half years to adjust their estate plans, removing the need to make rash decisions.

We’re here to help 

We’ll be watching the Budget and analysing what it means for you and your finances.
 
Soon after the event, you’ll receive news directly from Titan about the key changes and how they might affect you, your family, and your financial plan.

As ever, we’re here to answer any questions and allay your fears before and after the announcement.
 
Email info.wp@titanwh.com or call us on 0800 048 0150.

Please note
This article is for information purposes only and does not constitute personal financial advice. If you are unsure about whether a particular course of action is suitable for you, we recommend that you seek independent financial advice.

The value of investments and the income from them can fall as well as rise, and you may get back less than you originally invested. Past performance is not a reliable indicator of future performance. Tax treatment depends on individual circumstances and may be subject to change in the future. Tax and estate planning outcomes are not guaranteed.

The Financial Conduct Authority does not regulate estate planning or tax planning.
Titan Wealth Planning Ltd is authorised and regulated by the Financial Conduct Authority (FCA reference number: 574458). Registered address: 101 Wigmore Street, London, W1U 1QU, United Kingdom.