The UK government’s next Budget will be announced on 28 October. It may contain significant changes, but people should not make big decisions in advance, says Keith McLaren, a partner in the private wealth & tax team at UK law firm Shepherd and Wedderburn.

The Chancellor of the Exchequer, John Healey, will announce the next UK Budget on 28 October, and it is highly likely that by the time he stands up we will have at least some idea of what he will say.

The difficulty will be in knowing which of the leaked policies will indeed come to pass, and which are merely ‘kite-flying’ to gauge the public’s reaction to ideas that are under consideration but will be ditched if they receive a hostile reception. 

Why acting on UK Budget speculation can be risky

We understand the temptation to act on pre-Budget speculation, but we caution our clients to pause. 

It is far from unusual for policies that have been extensively trailed to disappear on Budget Day – such as the radical overhauls of Council Tax and tax relief on pensions contributions that both failed to make an appearance in the 2025 Budget. 

Healey’s appointment in July was not widely anticipated, and adds an extra element of uncertainty.

Could the UK Budget change tax-free pension withdrawals?

This time the speculation has been particularly focused on changes to the rules around tax-free pension withdrawals – but anyone who makes significant withdrawals in advance could find themselves much worse off in the long run if the new rules are not as expected. 

How could the UK Budget affect inheritance tax and estate planning?

It does seem likely that estate planning will have to change.

That might be due to the creation of a new ‘social care charge’ on death, most likely in addition to inheritance tax; changes to lifetime allowances for gifting; or the removal of the capital gains tax uplift on death.

Why taxpayers should wait for confirmed Budget measures

But we will have to wait and see what develops before we can start to advise our clients on how they should respond.

Keith McLaren, a Partner in the Private Wealth & Tax team at UK law firm Shepherd and Wedderburn.

FAQs

Should people act on speculation before the UK Budget?
No. Proposed tax policies may be changed or abandoned before the Chancellor delivers the Budget.

Could tax-free pension withdrawals change?
Changes have been widely discussed, but withdrawing substantial pension funds before the confirmed announcement could leave savers worse off.

How might the Budget affect estate planning?
Possible measures include a social care charge on death, new lifetime gifting allowances or the removal of the capital gains tax uplift on death.

When should taxpayers review their financial plans?
They should wait until the Government confirms its measures and then seek professional tax and estate-planning advice.

This article is featured in the Autumn 2026 edition of The Business magazine.

Distributed with The Sunday Times Scotland.

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