The Autumn Budget 2025 prompted much debate and, with almost three months of speculation, expectations ran high. The resulting measures, however, proved more notable for what was absent than what was included, leaving high-net-worth individuals (HNWIs) and entrepreneurs with a mix of opportunities and challenges to navigate.
In a recent webinar, Lombard Odier’s experts Sophie Dworetzsky, Head of UK Wealth Planning, David Barker, Senior Wealth Planner, and Isobel Holgate, Wealth Planner, examined the Budget’s implications for wealth creation, entrepreneurship, tax strategy, and succession planning. Drawing on decades of combined experience advising private clients, they offered practical insights for those seeking to protect, optimise, and grow their wealth in a complex and evolving fiscal landscape.
Autumn Budget 2025: what you need to know. Explore the key measures and what they mean for your business and wealth planning.
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Over the course of their discussion, they explored how these Budget measures – and the wider context in which they were announced – could affect wealth creation, investment decisions, business planning, and long-term succession strategies.
Managing uncertainty: how HNWIs reacted to Budget speculation
The lead-up to the Budget was marked by extensive leaks of potential tax changes and resulting media speculation. David Barker noted that this had tangible consequences, shaping pre-Budget behaviour: “Capital gains were realised due to concerns over further rate increases, while pension lump sums were withdrawn for fear of reductions in the tax-free allowance. Many individuals accelerated lifetime giving in anticipation of changes to the PET regime, and some even arranged to leave the UK and establish non-residency under the split-year basis to avoid a potential exit tax.”
These reactions highlight the wider consequences of uncertainty, with individuals and families sometimes making decisions based on expected tax changes, often at significant personal and financial cost. David Barker warned that, although some measures did not materialise in this Budget, the ideas behind them may remain under serious consideration and could resurface in future announcements.
Isobel Holgate also observed parallels with the 2024 Labour Budget, noting that while many pre-Budget fears proved unfounded, several points of interest emerged that HNWIs and entrepreneurs should monitor carefully.
Where the Budget bites: income, savings, and property taxes in focus
This Budget’s tax measures unfolded in ways that subtly, but decisively, redirect how wealthy individuals will need to think about income, savings, and property. For many, the story begins with dividends and savings income. From April 2026, dividend tax rates are set to rise:
- from 8.75% to 10.75% for the lower rate
- from 33.75% to 35.75% for the higher rate.
From April 2027, basic, higher, and additional rates on property and savings income will increase to 22%, 42%, and 47% respectively. Against this backdrop, Sophie Dworetzsky pointed to an unexpected source of reassurance: “Although pre-Budget speculation suggested that capital gains tax rates might rise, this has not materialised. With the top rate for investment gains remaining at 24%, we expect a renewed emphasis on strategies that prioritise capital growth, while minimising or deferring income returns for UK residents.”
Demand has strengthened for tax-efficient wrappers – particularly offshore life bonds – as investors look to defer income until they cease to be UK tax resident. As Sophie Dworetzsky notes, careful planning remains essential, especially for those considering temporary non-residence, where the line between opportunity and anti-avoidance risk can be thin.
Looking ahead, the introduction of a mansion tax from April 2028 – applying to properties over GBP 2 million – is modest in yield but highly symbolic
Property owners, meanwhile, find themselves navigating a tightening fiscal landscape. The 2% increase in tax on property income confirmed in the Budget adds yet another layer to a multi-year accumulation of pressure: higher SDLT, the erosion of wear-and-tear allowances, and restrictions on mortgage interest relief. As David Barker observed, “All of these, along with the new 2% increase from April 2027, have a corrosive effect on the benefits of being a landlord. Beyond tax, the Renters’ Rights Act has prompted some landlords to sell property portfolios, reflecting broader market pressures.”
Looking ahead, the introduction of a mansion tax from April 2028 – applying to properties over GBP 2 million – is modest in yield but highly symbolic. Affecting many London-based owners, the costs of implementing and administering the tax may outweigh the revenue collected. David Barker suggested the measure may be as much about signalling as substance: a way to demonstrate that the wealthiest are shouldering the tax burden, or perhaps the first step in laying the groundwork for future revenue-raising reforms.
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learn more Seizing opportunities while managing risk: the Budget for entrepreneurs
For entrepreneurs, the Budget painted a more nuanced picture, combining encouragement with caution. As Sophie Dworetzsky noted, there were genuine bright spots for those building and scaling businesses. The government widened access to the Enterprise Investment Scheme (EIS), doubling both the gross asset and annual investment limits, giving a broader range of companies the ability to raise capital more efficiently. There was also welcome progress on the Enterprise Management Incentive (EMI) scheme. With gross asset thresholds quadrupled to GBP 120 million and employee limits raised to 500, more growing businesses can now use tax-efficient equity incentives to align key management with long-term goals. “As an entrepreneur moves towards a potential exit, demonstrating a motivated and well-aligned senior management team can materially enhance value,” said Sophie Dworetzsky. “EMI is a powerful way to support that alignment, making the expansion of its scope particularly welcome.”
The government also reaffirmed its support for innovation through public procurement initiatives and measures to make it easier for the British Business Bank to invest. Alongside this, it published an Entrepreneurship Prospectus bringing together recent tax changes to EIS, VCT, and EMI schemes, while reiterating a commitment to streamline visas for high-skilled workers, which may link to the Qualifying New Residents (QNR) regime introduced after the abolition of the remittance basis. While some might see these measures as largely aspirational, Sophie Dworetzsky describes them as “green policy shoots for entrepreneurs.”
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learn more However, the Budget also brought some challenges for entrepreneurs. David Barker highlighted immediate changes to Employee Ownership Trust CGT relief, which will now reduce from 100% to 50%, alongside tighter rules on corporate reconstructions and anti-avoidance. The long-standing “bona fide commercial reasons” test has been replaced by a Targeted Anti-Avoidance Rule, and it remains to be seen how this amendment will alter the landscape for pre-sale restructuring.
Amidst these adjustments, the Budget offered a measure of reassurance: no exit tax will be introduced this year for those planning to become non-resident before a business sale. Sophie Dworetzsky emphasises the need for careful navigation of the statutory residence test and the Temporary Non-Resident rules. For example, post-departure trading profits paid as dividends are now taxable if the recipient returns within five years, underscoring that temporary non-residency planning can still be effective – but only when approached with precision and expert guidance.
We are undeniably in a high-tax, high-cost environment. The rise in income tax rates is unhelpful, yet the green shoots for entrepreneurship are encouraging – if nurtured carefully
Strategic planning: risks and opportunities for wealth creators
Our experts wrapped up with a forward-looking discussion on whether the UK is beginning to regain its appeal for wealth creators. Sophie Dworetzsky struck a note of cautious optimism: “It is heartening to see renewed focus on wealth creators and entrepreneurs, but we are undeniably in a high-tax, high-cost environment. The rise in income tax rates is unhelpful, yet the green shoots for entrepreneurship are encouraging – if nurtured carefully.”
David Barker added perspective on the increasingly global mindset of HNWIs. Some are already weighing relocation, with Switzerland, Italy, and the UAE emerging as attractive alternatives thanks to favourable tax regimes and lifestyle considerations. “Relocation isn’t just about tax,” he reminded attendees. “Culture, schooling, climate, and family all matter – don’t let the tax tail wag the dog.”
Culture, schooling, climate, and family all matter – don’t let the tax tail wag the dog
For those staying in the UK, the team highlighted that succession planning, pre-sale restructuring, and asset holding strategies continue to be crucial. Thoughtful timing, careful structuring, and expert guidance were emphasised as essential tools for mitigating risk, optimising tax outcomes, and preserving wealth across generations. In other words, the Budget may have offered fewer headline-grabbing changes than expected but, for attentive wealth creators, it underscores the importance of strategic, forward-looking planning.
Practical checklist following the Autumn Budget 2025
Tax & income planning
- Consider the impact of upcoming dividend, savings, and property income rate changes.
- Discuss potential use of tax-efficient wrappers and timing of investment gains with your advisor.
Property ownership
- Review implications of the 2% property income tax rise and future “mansion tax” on high-value properties.
Entrepreneurship & business planning
- Explore opportunities under EIS and EMI schemes.
- Consider timing and structure for pre-sale restructuring and succession planning.
Residency & relocation
- Assess non-UK residency strategies and implications for IHT and offshore income.
- Discuss navigation of the statutory residence test for temporary non-residency.
Succession & estate planning
- Review trust and estate structures, including excluded property trusts and reliefs.
- Consider family governance and alignment with long-term succession objectives
Autumn Budget realities: planning with purpose
The Autumn Budget 2025 leaves wealth creators with a recognisable challenge: navigating incremental tax rises while making the most of targeted opportunities. Many of the most consequential measures – from dividend and property income tax increases to adjustments in entrepreneurial reliefs – will unfold over the next two years, giving individuals and families a valuable window in which to plan.
As our experts emphasised, the right decisions depend on personal priorities: whether to accelerate income, defer gains, consider restructuring, or explore relocation options. These are not purely financial questions. They touch on family governance, long-term succession, and the wider ambitions entrepreneurs hold for their businesses and their legacy. As Sophie Dworetzsky noted, the environment may be high-tax and high-cost, but there remain meaningful openings for those who plan ahead.
For HNWIs and UHNWIs considering their next steps, early engagement remains essential. Assessing residency, reviewing trust structures, planning for potential exits, or preparing for future income changes all benefit from thoughtful timing. At Lombard Odier, we work closely with clients to help them understand the implications of these developments and to craft bespoke strategies that reflect their goals, values, and family context.
While this Budget may have delivered fewer surprises than expected, it reinforces a familiar truth: proactive, well-informed planning is the most powerful tool for preserving and building wealth in an evolving fiscal landscape.
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