Chancellor John Healey delivers his first budget of 2026 this Autumn on Wednesday the of 28th October, and most commentators expect it to raise taxes again. Income tax, National Insurance and VAT rates look safe. That pushes attention towards wealth: capital gains, inheritance, pensions and property.
For GORDON PSI clients, that makes one question more important than usual: how much of your portfolio sits in assets the Treasury cannot easily reach? Below we cover what is already locked in, what could change on the day, and where cask whisky and tequila fit.
Why pressure is building? UK borrowing costs hit their highest level since 2008 in early September, and debt sits around 95% of GDP. Prime Minister Andy Burnham has already committed to costly pledges, including removing VAT from household electricity from 1 October. If this Budget raises taxes, it will be the third tax-raising Budget in three years, after £41.5bn in 2024 and £26bn in November 2025.
Already Locked in: Changes Already Scheduled for the 28th of October
Previous Budgets have already set these changes in motion. They matter because they shrink the traditional tax shelters many of our clients rely on.
| Change | When | Who it hits |
|---|---|---|
| CGT rates raised from 10% / 20% to 18% / 24% | In force since 30 October 2024 | Anyone selling shares, funds or other assets at a gain |
| CGT annual allowance cut from £12,300 to £3,000 | In force since April 2024 | Every investor with gains outside ISAs and pensions |
| Business Asset Disposal Relief rate up from 10% to 14%, then 18% | 14% from April 2025, 18% since 6 April 2026 | Business owners selling their company |
| CGT relief on sales to employee ownership trusts cut from 100% to 50% | In force since 26 November 2025 | Business owners planning an exit |
| Dividend tax up 2 points (10.75% basic, 35.75% higher) | In force since 6 April 2026 | Share and fund investors outside ISAs, company directors |
| VCT income tax relief cut from 30% to 20% | In force since 6 April 2026 | Venture capital trust investors |
| Tax on savings interest up 2 points (22% / 42% / 47%) | 6 April 2027 | Cash savers, bond and fixed-income investors |
| Tax on rental income up 2 points (22% / 42% / 47%) | 6 April 2027 | Buy-to-let landlords (England, Wales, NI) |
| Cash ISA limit cut from £20,000 to £12,000 (under-65s) | 6 April 2027 | Cash ISA savers |
| Unused pensions brought into your estate for inheritance tax | 6 April 2027 | Anyone using a pension to pass on wealth |
| New annual surcharge on homes over £2m (£2,500 to £7,000 a year) | April 2028 | High-value homeowners in England |
| Income tax thresholds frozen | Until April 2031 | Every earner, through fiscal drag |
| IHT nil-rate bands frozen (£325,000 + £175,000) | Until April 2031 | Estates, especially with property |
The pattern is clear. Gains and income from savings, shares and property are being taxed harder, and the allowances that protect it are standing still while prices rise.
What Could Change on the 2026 Autumn Budget day?
Nothing below is confirmed. These are the areas advisers and commentators are watching most closely.
Capital gains tax.
CGT currently sits at 18% for basic rate and 24% for higher rate taxpayers, with an annual allowance of just £3,000. Aligning CGT with income tax rates (up to 45%) has been floated for years. Talk of it has quietened, but a smaller rise, possibly timed from April 2027, remains a real possibility. For anyone holding shares, funds or second properties with large gains, that is the headline risk.
Inheritance tax.
The Prime Minister has spoken about replacing IHT with a broader levy on estates to fund social care. One idea mentioned is a flat 10% tax on assets at death with no nil-rate band. Most experts think a full overhaul is more likely in a later Budget, but tighter rules on lifetime gifts are possible.
Pensions.
Cutting the 25% tax-free lump sum or pension tax relief comes up before every Budget. Major changes look unlikely this year, but a small charge on pension fund fees has been suggested.
ISAs and investment reliefs.
A cap on the total value you can hold in ISAs has been mentioned, alongside limits on Enterprise Investment Scheme relief.
Property.
A land value tax to replace stamp duty and council tax is a long-term ambition, not an October measure. More immediately, the £2m home surcharge threshold could drop to £1.5m, and holiday lets could lose business rates relief.
Wealth tax.
Discussed, but widely seen as unworkable and unlikely in this Budget.
Where Whisky and Tequila Casks Sit Within the 2026 Autumn Budget?
If CGT rises, the value of owning assets that sit outside it rises too. That is where casks come in.
Why casks are usually outside CGT.
HMRC treats most tangible, movable items with a predictable life of 50 years or less as “wasting assets”, and gains on them are generally exempt from capital gains tax for private investors. Maturing spirit in cask is widely treated this way. In practice, a UK individual holding a cask as a personal investment will usually pay no CGT when it is sold, however much it has grown.
Scotch whisky: the long-term hold.
Scotch matures in cask over many years and is a physical asset held in bonded warehouses. It is not tied to stock markets, interest rates or property prices. For clients worried about a higher CGT rate on shares or second homes, it offers a way to diversify into an asset that generally sits outside that tax.
Tequila: the three-year hold.
Our tequila programme runs over three years with a fixed target return of 8.5% a year. For clients facing higher tax on savings interest from April 2027, a defined, shorter-term holding can be a useful counterweight to cash. How the return is taxed depends on how your agreement is structured and on your own circumstances, so please confirm your position with your accountant before you invest.
What casks do not do.
They are still part of your estate for inheritance tax. They are not covered by the Financial Services Compensation Scheme. And the wasting-asset treatment could be reviewed in any future Budget, including this one. If HMRC concluded someone was trading in casks rather than investing, income tax could apply instead.
Where they fit.
Casks work best as one part of a diversified portfolio alongside pensions, ISAs and other holdings, not as a replacement for them.
Five things to review before the 2026 Autumn Budget on October 28th
- Use this year’s allowances.
Your £20,000 ISA allowance and £3,000 CGT allowance reset on 6 April. Using them now protects you if the rules tighten. - Look at gains you are sitting on.
If you hold shares, funds or property with large gains, talk to your adviser about timing. Rushing to sell before the Budget is rarely wise, but knowing your numbers is. - Check how your pension fits your estate plan.
From April 2027, unused pensions count towards inheritance tax. That may change which assets you draw on first. - Review how much you hold in cash.
Savings tax rises in April 2027 and the cash ISA limit falls. Consider whether all of it needs to sit in cash. - Ask whether your portfolio is diversified by tax treatment, not just by asset.
Holding some assets that are taxed differently (pensions, ISAs, casks) spreads your exposure to any single rule change.
Important information
This article is for general information only and is not financial, tax or investment advice. Budget measures described as possible or expected are speculation until announced. Tax treatment depends on individual circumstances and may change in future. Cask whisky and tequila are unregulated investments: they are not regulated by the Financial Conduct Authority and are not covered by the Financial Services Compensation Scheme or the Financial Ombudsman Service. The value of casks can fall as well as rise, they can be hard to sell quickly, and you may get back less than you invest. Any target return is not guaranteed. Past performance is not a guide to future returns. Please seek independent financial and tax advice before investing.
