It looks like Britain’s wealthiest may soon be reaching deeper into their pockets.
Chancellor Rachel Reeves has hinted that higher taxes for the rich will form a key part of her upcoming Autumn Budget — one that could reshape how pensions, property, and investments are taxed in the UK.
Speaking in an interview with The Guardian, Reeves said that raising taxes on the wealthy would be “part of the story,” especially as economic experts warn she might need to find more than £40 billion to balance the books.
While she’s ruled out introducing a completely new “wealth tax,” it’s clear that the well-off will be shouldering more of the fiscal burden.
So, where exactly could these tax changes land — and how can people prepare before the Budget arrives?
Pensions May Be the First Target
Pensions are often one of the biggest assets for high earners, and Reeves could see them as a practical starting point.
During the last Budget, the government announced that unused pension assets would be pulled into inheritance tax from 2027 — but experts believe the Chancellor might go further this time.
Financial planners suspect she could trim back how much of a pension can be withdrawn tax-free.
At the moment, retirees can take up to 25% of their pension — capped at £268,275 — without paying tax. But that could be slashed to around £100,000.
“It would be a deeply unpopular move,” warns Jason Hollands from Evelyn Partners.
“Many people use their tax-free pension lump sum to clear debts or mortgages before retirement, so cutting this would hit those with larger pensions the hardest.”
Experts like Ian Futcher of Quilter advise that if changes come, some people might consider moving funds into trusts or structured gifts — but only after careful planning.
“Once money leaves a pension, it loses its tax shelter,” he cautions. “There’s no one-size-fits-all solution here.”
Capital Gains Tax Could Rise Again
The wealthy were already in Reeves’s crosshairs last year when she raised capital gains tax (CGT).
The rate for basic-rate taxpayers jumped from 10% to 18%, and higher-rate taxpayers now pay 24% instead of 20%.
While some feared she’d align CGT with income tax, that didn’t happen — and it may still be too soon for another sharp increase.
However, as Hollands notes, “a modest rise can’t be ruled out.”
He warns investors that if they’re planning to sell assets, they might want to do so before the Budget.
“Last time, the Chancellor made the changes effective immediately on Budget Day,” he says.
“So, if you’re planning to crystallize gains, don’t wait until the last minute.”
Dividend Taxes Could Also Tighten
There’s talk that Reeves might revisit dividend taxation — particularly for business owners who pay themselves through dividends instead of salaries.
The current rates range from 8.75% for basic taxpayers to 39.35% for the highest earners, still lower than income tax.
Neil Wilson from Saxo warns that aligning these with income tax would significantly cut into investment returns, especially for retirees relying on dividends.
“It’s becoming crucial for investors to use tax-efficient options like ISAs or SIPPs,” he says.
Futcher adds, “If you have investments outside an ISA, consider realizing smaller gains each year to make use of your annual CGT allowance instead of letting them build up.”
Property Taxes Could Be Overhauled
Property owners — especially landlords — might also be in for a shock.
Rumours suggest Reeves could introduce National Insurance charges on rental income or even replace stamp duty with a nationwide property tax on homes valued above £500,000.
Jonathan Hopper of Garrington Property Finders says landlords are “soft targets” for the Treasury, though he cautions against panic-selling.
“You could end up accepting less in a weak market,” he says.
Experts recommend keeping a cool head. “Hold property in a limited company if appropriate,” says Futcher, “but make sure you get professional advice first.”
Meanwhile, residential homeowners — particularly in London and the South East — could feel the squeeze if stamp duty is replaced by a value-based property levy.
Inheritance and Gift Taxes May Be Tightened
Reeves has already shown a willingness to clamp down on inheritance tax reliefs. She’s capped business and agricultural relief and halved tax breaks on AIM shares.
Now, financial planners expect she might go a step further by introducing a lifetime cap on gifts.
Currently, individuals can give £3,000 per year tax-free, plus unlimited smaller gifts.
A cap would represent a major shift — and could trigger a wave of pre-Budget gifting from wealthier families.
“Larger gifts can still make sense,” says Futcher, “but only if you’re confident you won’t need the money later. Always document gifts carefully.”
Another potential move could be scrapping the “CGT uplift on death,” which currently wipes away capital gains tax when someone dies.
Removing that would mean beneficiaries face both CGT and inheritance tax — a double hit that few could avoid.
Don’t Rush Into Decisions Based on Rumours
With the Budget drawing closer, speculation is running wild. But advisers are urging calm.
“It’s tempting to act preemptively,” says Futcher, “but the best thing most people can do is stick to existing rules and make sure their finances are as tax-efficient as possible.”
In other words: don’t panic, don’t make rash moves — and definitely don’t restructure your finances based on rumours alone.
Reeves has made it clear that the wealthy will be asked to “do their bit.”
But until the Office for Budget Responsibility releases its growth forecast — and the full Budget lands — it’s best to stay informed, not impulsive.