Chancellor Rachel Reeves has suggested that the government will not introduce a new, stand-alone wealth tax. At first glance, this may sound like good news for business owners and investors. In reality, however, the approach is far more subtle — and potentially just as costly.
Rather than unveiling a new tax, the Chancellor plans to target wealth through the back door, tightening and reforming the taxes that already capture assets such as property and shares. Her mantra that “those with the broadest shoulders should pay their fair share” signals a clear risk of raising revenue from existing mechanisms such as Capital Gains Tax, Inheritance Tax and property-based charges. Wealth taxes by another name.
Existing UK Taxes That Already Target Wealth
Reeves noted that “we already have a number of taxes in the UK that do tax wealth”, each of which could soon become less generous or more tightly enforced.
- Council Tax is long overdue a revaluation of property bands, which have not changed since 1991. Proposals include replacing the current system with a progressive property tax, likely to raise more from higher-value homes.
- Capital Gains Tax (CGT) may be increased or even brought closer in line with income tax rates, substantially increasing the effective rate on the sale of shares, businesses, and second homes. The annual exemption could also be reduced further. Business Asset Disposal Relief (formerly Entrepreneurs Relief) also rises to 18% from 14% in March 2026.
- Inheritance Tax (IHT), currently payable on estates above £325,000, is under growing pressure for further reform following the changes to Business Property Relief & Agricultural Relief announced last year — increasing exposure for family business owners.
- Stamp Duty Land Tax (SDLT), while not a direct wealth tax, already raises significant revenue from property transactions and may face higher rates or reduced reliefs. There remains the possibility of SDLT being replaced by an annual “mansion tax”.
What This Means for Business Owners and Their Advisers
Whilst there may not be a “Wealth Tax” in name, the direction of travel is unmistakable: the government is preparing to extract more revenue from wealth, business ownership, and existing assets.
For business owners, this could mean a steady erosion of the reliefs and allowances that have long supported growth, succession, and retirement planning. Rules on the sale or succession of businesses are likely to tighten, on top of significant reforms to Business Property Relief already in place. Inheritance Tax exposure will rise as pensions will shortly lose their long-standing exemption.
Next Steps
Our team will continue to monitor the Autumn Budget and provide timely updates on any confirmed reforms. In the meantime, we strongly encourage clients to:
- Review ownership and succession structures.
- Assess potential exposure under revised CGT and IHT rules.
- Consider the timing of asset disposals or reorganisations before changes take effect.
Proactive planning now could prevent significant future tax exposure.
If you would like a complimentary consultation to discuss how the forthcoming Budget may affect your business or family wealth, please get in touch with our team.
How Can Qubic Help?
To navigate these potential changes, Qubic offers tailored tax planning services. Our expertise can help mitigate the impact of higher taxes and help you leverage existing reliefs effectively. The window of opportunity to capitalise on existing tax rates and reliefs is narrowing, making now the time to act.
We understand that tax uncertainty can be challenging – and we’re here to help.
For more information on our tax planning services and to discuss your options with one of our team, simply click the link below:
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Email: info@qubic-group.com
Call: 0191 232 2001
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