The UK is on the verge of the most significant tax overhaul in over a decade.
Following the Autumn Budget 2025, the government is preparing to introduce sweeping reforms that will reshape the way taxpayers, investors and business owners manage their finances.
From April 2026, a restructured tax system will come into force, focusing on Inheritance Tax (IHT), Capital Gains Tax (CGT), and potentially a Wealth Tax — a move that signals a decisive shift from income-based taxation to wealth-based taxation.
This isn’t a cosmetic adjustment. It’s a fundamental change in the UK’s fiscal philosophy — one that will affect anyone with property, investments or intergenerational wealth.
The UK’s public finances are under immense pressure. After years of frozen thresholds, generous reliefs and mounting debt, the Treasury has no choice but to seek new revenue streams.
Raising income tax or VAT would be politically toxic, so the government is targeting the area where most wealth now lies — assets, investments and inheritances.
In other words, if you own property or have built up savings or investments, you’re in HMRC’s spotlight.
The Inheritance Tax threshold in the UK has been frozen at £325,000 since 2009.
As property values have soared, more and more ordinary families are being drawn into the IHT net — even those far from “wealthy.”
For families, entrepreneurs and property owners, these moves could drastically increase exposure to IHT.
Estate planning — once the preserve of the ultra-rich — is becoming a mainstream necessity.
Experts now warn that IHT may become the single biggest source of additional Treasury revenue by 2026.
CGT looks set for its biggest shake-up since 2010.
Currently, the top rates are 20% on investments and 28% on residential property. But the government is reportedly considering aligning CGT rates with income tax rates, which would mean up to 45% for higher earners.
This could hit investors, landlords, and small-business owners hard.
For many, the timing of a sale could make a huge financial difference.
Those who realise gains before April 2026 could save thousands in future tax.
A potential Wealth Tax remains one of the most hotly debated ideas in British politics.
While the government hasn’t confirmed any legislation, the concept is gaining traction — especially amid rising inequality and growing demands for “fairer” taxation.
Proposals under discussion include:
Assets that could be caught include property (UK and overseas), company shares, investment portfolios, luxury items, and high-value collectibles.
For high-net-worth individuals, this means one thing: review your asset structure now.
Trusts, holding companies and family-office structures may become crucial tools for tax efficiency and asset protection.
Conduct a full audit of your assets — real estate, investments, shares, pension pots, and valuable personal property.
You can’t plan effectively if you don’t know your true net worth.
Remember: HMRC’s data analytics already do.
If you operate a business, assess whether your current setup (Ltd, LLP, sole trader) will still be efficient after the reforms.
Corporate reliefs may be tightened, and compliance costs are expected to rise.
If you intend to pass on assets to children or relatives, consider acting sooner rather than later.
Delaying could mean falling under new, stricter IHT rules and higher effective rates.
Many reliefs — such as CGT allowances, EIS/SEIS investments, and entrepreneur exemptions — may disappear.
Using them now could lock in significant long-term savings.
HMRC’s enhanced powers will enable deeper scrutiny of valuations, gifts and transfers.
Keep accurate records, property appraisals, transaction histories and source-of-funds documents.
2026 will reward those who prepare early.
If you haven’t reviewed your tax strategy recently, now is the time.
A tailored plan can help avoid costly surprises and protect your wealth in the long term.
Ultimately, the reforms aim to rebalance the system — but execution will decide whether they build trust or trigger economic slowdown.
Absolutely.
By 2026, the UK tax landscape will be stricter, more digital and more data-driven.
HMRC is already using AI and cross-agency databases to detect inconsistencies, undeclared income, and hidden assets across borders.
The days of intuition-based tax planning are over.
The new environment demands strategy, accuracy and full transparency.
These reforms aren’t just about raising money; they mark the birth of a new culture of compliance.
Taxpayers will need to prove that their declarations are complete, correct and traceable.
Accountability will become the central pillar of doing business in the UK.
Those who embrace the change — by automating reporting, investing in compliance software and maintaining audit-ready documentation — will thrive in the new regulatory landscape.
The 2025/2026 UK tax reforms will redefine how wealth is taxed, managed and transferred.
From Inheritance Tax to CGT and a possible Wealth Tax, the coming changes represent a shift from taxing income to taxing prosperity itself.
Those who plan — win.
Those who wait — pay.
If you own property, investments or run a business in the UK, November 2025 is the time to act strategically.
When the new tax era begins in 2026, preparation will be the difference between financial stability and costly surprises.
Magda Mikulska
Tax Adviser Wisetax Founder
