Andy Burnham’s October Budget: 7 Tax Changes Homeowners, Investors and Business Owners Should Watch

Andy Burnham's first Budget as Prime Minister is fast approaching – and tax is firmly in the spotlight.

On 28 October 2026, Chancellor John Healey is due to deliver the Autumn Budget, with growing speculation about how the Government will raise additional revenue while dealing with pressure on public finances.

The important point is that not all of the possible tax changes being discussed have been announced or confirmed. Some are proposals, some are industry recommendations and others are simply speculation.

Nevertheless, for anyone with significant property, investments, savings, a pension or a family business, the Budget could be very important indeed.

Here are seven areas we think are well worth watching...

Andy Burnham’s October Budget: 7 Tax Changes That Could Affect Your Money

At The Tax Faculty, Capital Gains Tax is our 'bread and butter' so naturally this is a big area of interest for us. Capital Gains Tax (CGT) is likely to be one of the biggest areas of interest for property owners and investors too.

For 2026/27, the main CGT rates are currently 18% for basic-rate taxpayers and 24% for higher- and additional-rate taxpayers, with an annual exempt amount of £3,000.

There has already been speculation about further changes to CGT, including possible changes to rates and the way capital gains are taxed.

That matters particularly if you are considering:

• Selling a second home

• Selling a buy-to-let property

• Disposing of a portfolio of shares

• Selling a business

• Transferring investments

• Making a large investment disposal

A key question for taxpayers is whether a proposed change would affect transactions completed before or after the Budget – and whether any measure would take effect immediately or from a future tax year.

Top Tip: If you are already considering selling a substantial asset, it may be worth taking professional tax advice before making an irreversible decision based purely on Budget speculation.

1. Could Capital Gains Tax rise again?

Property remains one of the most politically sensitive areas of UK taxation. There has been an ongoing (and often contentious) discussion around the taxation of property, landlords and higher-value homes, while the Government's devolution plans could also give English regions greater powers over local taxation.

For landlords and property investors, the important questions include:

Could the tax treatment of rental income change?

Could Capital Gains Tax on property be increased?

Could additional property taxes be introduced?

Could local taxation become more important?

Will future reforms affect landlords differently from owner-occupiers?

Top Tip: Anyone with a substantial property portfolio should therefore be looking beyond the headline Budget announcement and considering how changes could affect their long-term investment and exit strategy.

2. Could property taxation change?

Inheritance Tax (IHT) remains a major concern for families with substantial estates and it's a conversation we've been having with more and more clients lately who are simply looking for clarity.

The standard nil-rate band remains £325,000, while the residence nil-rate band can provide an additional allowance subject to the relevant conditions.

There are already significant changes to IHT taking effect in this period. For example, changes to Agricultural Property Relief and Business Property Relief took effect from April 2026, while most unused pension funds are due to come within the IHT regime from April 2027.

And that makes this Budget particularly relevant to:

• Business owners

• Farmers and landowners

• Property-rich families

• People with substantial pension funds

• Individuals considering lifetime gifts

• Families planning succession

In our opinion, the crucial issue is not simply “Will IHT go up?” It is whether the rules governing what forms part of your estate and which reliefs are available could change further.

Top Tip: If your estate could be affected by Inheritance Tax, don’t wait until the Budget to start planning—review your assets, gifts, pensions and available reliefs now, so you have time to consider your options before any rule changes take effect.

3. Could Inheritance Tax become more expensive?

Dividend taxation has already changed.

From April 2026, the basic and higher rates of tax on dividend income increased by two percentage points, to 10.75% and 35.75% respectively, while the additional rate remains 39.35%.

This is particularly relevant to company directors and owner-managed businesses who extract profits through dividends.

The October Budget could therefore be important for anyone deciding how to extract profits from a company.

Business owners may want to consider the wider picture rather than looking at dividends in isolation, including:

• Salary

• Dividends

• Pension contributions

• Retaining profits within a company

• Business investment

• Future sale of the company

Top Tip: Tax planning should always take account of the individual's circumstances and the commercial reasons for the transaction.

4. What could happen to Dividends?

There is growing pressure from some organisations for the Government to increase taxation of wealth, capital gains, dividends and rental income.

For example, the TUC has recently called for higher taxation of capital gains, dividends and rental income as part of measures to help fund lower household energy costs. However, it is important to note that these are policy proposals rather than confirmed Government measures. Meanwhile, some reports suggest the Government is examining a range of possible tax-raising measures ahead of the Budget.

For investors, this raises an important question:

Are you relying on today's tax rates when making a long-term investment decision?

That does not mean taxpayers should rush into transactions simply because a tax rise has been suggested. In our experience, acting solely on speculation can create its own set of unique tax problems.

Top Tip: The sensible approach is to try and wrap your head around the potential exposure and work out a plan for different scenarios.

5. Could taxes on wealth and investment income change?

We think that business taxation may be another area to watch. For business owners, however, the Budget is about more than Corporation Tax.

Possible changes to the taxation of:

• Dividends

• Business disposals

• Capital gains

• Company reorganisations

• Employee benefits

• Pension contributions

• Property

• Business succession

could all affect the overall cost of running, restructuring or eventually selling a business.

Top Tip: For anyone considering selling a company or passing it to the next generation, tax planning before the transaction can be considerably more valuable than trying to fix the position afterwards.

6. Could businesses face additional taxation?

This may be the most important issue of all.

Interestingly (and sadly!) a Government does not necessarily need to announce a dramatic increase in the headline rate of income tax or CGT to increase the amount people pay.

Frozen tax thresholds can gradually pull more income into higher tax bands as wages, pensions and other incomes rise.

There are also changes already scheduled for future years. For example, the tax treatment of property and savings income is due to change from April 2027, while unused pension funds are due to enter the IHT regime from the same date.

Top Tip: Taxpayers should look at their total tax position over several years, rather than focusing solely on the headline announcements made on Budget Day.

7. Could the tax burden increase without headline tax rates rising?

The biggest mistake would be to make a major financial decision purely because of a newspaper headline or an online rumour.

If you are considering:

• Selling a property

• Selling shares or investments

• Selling a business

• Making substantial gifts

• Changing how you extract profits from your company

• Reviewing your inheritance tax position

• Restructuring your investments

• Changing your pension strategy

It may be time to consider the tax implications...

However, that does not necessarily mean taking action before the Budget. It means understanding what you could gain, what you could lose and what options you have if the rules change. But there is an important distinction between what we know, what has been announced and what is merely being discussed.

If you are concerned about how possible changes to CGT, IHT, property taxation, dividends or business taxation could affect you, The Tax Faculty can review your circumstances and explain the tax implications before you make a major financial decision.

Contact The Tax Faculty for specialist UK tax advice.

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What should you do before the October Budget?

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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