How does the Autumn Budget affect me?

One month on from the Autumn Budget, people are beginning to really focus on the impact of the Chancellor’s tax hike on their personal circumstances. Clients are looking to adjust their plans for the future to take account of a less favourable financial landscape, and they’re making decisions that put them and their families in the best possible position for the years ahead.

Some of the big changes affecting our clients include:

A widened inheritance tax net

A change to Agricultural Property Relief has raised huge concerns in the farming community. This relief has been in place for more than thirty years and has allowed farms to be passed down tax-free. But from April 2026, only the first £1m of combined agricultural and business property will be free from inheritance tax. Value above that amount will be taxed at 20%. The government says only around 500 farms will pay more than they do currently, but farmers fear for the future of family businesses.

Another significant inheritance tax change is the inclusion of pensions in calculations. Pensions don’t currently count when valuing an estate, but from 2027 inherited pensions will form part of the estate’s overall value. If that value exceeds the threshold (£325,000, or £500,000 if you are passing your property to a child, grandchild or another direct descendent) inheritance tax should be payable. The nil-rate band (£325,000) and residence nil-rate band (£175,000) have been frozen until 2030.

Stamp duty on second homes

People looking to buy a second home will need to factor in a higher rate of stamp duty. From 31 October 2024, an extra 5% will be applied. The aim is to improve prospects for first-time buyers and people looking to move house, although there are concerns that landlords may be put off buying more properties, making for potentially fewer options, and higher prices, in the rental market.

Capital Gains Tax increases

Disposing of assets that have risen in value now attracts a higher rate of CGT. The rate for basic rate taxpayers is now 18%, instead of 10%. Higher rate taxpayers must pay 24%, rather than the previous 20%.

A number of other changes have been introduced, including to the inheritance tax treatment of some non-UK assets. This should be food for thought for anyone keen to make the most of what they have and to preserve the value in their estate.

Talk to one of our specialist lawyers today on 01264 353411 or info@bsandi.co.uk about ways of shoring up your personal situation to factor in the changes that have already taken place and those expected in the near future.