The first Budget under Andy Burnham’s leadership was widely anticipated, particularly following the last two. However, the Chancellor delivered what many commentators have described as a relatively cautious Budget.
There is a range of small tweaks and absences that I think, from a Private Client perspective, are worth noting and factoring into planning over the next few months.
Inheritance Tax
After the last two years, perhaps the most notable feature of the Budget is that there were no further substantive changes to the IHT regime and, despite hopes in some quarters that the Government might revisit the recently introduced restrictions on Agricultural Property Relief ("APR") and Business Property Relief ("BPR"), no such announcements were made. For farming families (and owner-managed businesses), whilst this may provide some short-term certainty, it is against a backdrop of significant change and a growing number of challenges facing businesses.
With pensions coming within the scope of IHT from April 2027, succession planning continues to move higher up the agenda for many families. The focus is increasingly not simply on what assets are owned, but how those assets are held and transferred between generations.
Succession Planning
In practical terms, families should continue to consider the wider succession picture. Appropriate ownership structures and investment vehicles, trusts, Lasting Powers of Attorney and, where relevant, pre-nuptial or post-nuptial agreements all remain important tools in preserving and transferring wealth effectively.
Increasingly, as wealth and assets are spread around the family or, in the case of family investment companies, centralised, families are also finding value in family charters, which can help establish expectations, governance arrangements and a shared vision for the future stewardship of family assets.
Mansion Tax
The proposed "Mansion Tax" (a high-value council tax surcharge) remains on course for introduction from April 2028 for owners of residential property in England valued at £2 million or more in 2026. Whilst various exemptions and reliefs continue to be discussed, including potential concessions for certain farmhouses, the detail is still evolving and will merit careful attention over the coming months.
Self-assessment
Looking further ahead, changes to self-assessment payment dates are also expected from April 2029, with further details yet to be confirmed. Whilst the implementation date remains some way off, any acceleration or restructuring of payment obligations could have significant cash flow implications for taxpayers and business owners alike.
Income Tax
In respect of savings income, the Budget announced that the Government will increase the rates of income tax. From 6 April 2027, the savings basic rate will be 24%, the savings higher rate will be 44%, and the savings additional rate will be 49%.
The Budget also confirms changes to the taxation of property income. From 6 April 2027, the property basic rate will be 24%, the property higher rate will be 44% and the property additional rate will be 49%.
For landlords who fall within the additional rate band, these changes may prompt renewed consideration of succession and ownership structures. Options such as lifetime gifts of investment property, the use of family investment companies, or other wealth-holding structures may help achieve broader estate planning and tax objectives. However, the most appropriate solution will vary considerably depending upon family circumstances, long-term intentions and commercial considerations. As is so often the case, early advice and planning are likely to provide the greatest flexibility.
CGT
The Budget didn’t include an increase in the rates of CGT, but it did include a change to Business Asset Disposal Relief (BADR). BADR has been whittled down over the years, and from April 2027 the lifetime limit for capital gains eligible for BADR is being reduced from £1 million to £500,000 (it was £10 million). This may mean that exit plans are accelerated over the coming months.
In addition, a new Founders’ Relief, providing a 10% CGT rate on up to £10 million of lifetime gains for qualifying founders of “high-growth, innovative companies”, will be introduced from 6 April 2027. The Government is consulting on how the relief will work in practice, and the consultation closes on 30 November 2026. Based on what is currently known, whilst Founders’ Relief is more generous, it is more restrictive than BADR.
Final thoughts
Whilst the Budget 2026 may have been light on headline-grabbing private client tax announcements, it serves as a timely reminder that effective succession planning is rarely driven by a single Budget. Rather, it is the cumulative effect of changes to inheritance tax, pensions, property taxation, business reliefs and investment structures that can materially alter the outcome for families and business owners.
What is particularly notable is that many of the changes announced do not take effect immediately. This creates a valuable planning window for individuals, families, farmers, landlords and business owners to review existing arrangements before the new rules come into force. Whether that involves reviewing a will, considering the future ownership of investment property, restructuring family wealth, updating powers of attorney or preparing for the next generation to take over the family business, acting early is more likely to preserve flexibility and maximise available options.
If any of the issues discussed in this blog are relevant to you, now may be an opportune time to undertake a review of your succession and tax planning arrangements. The Roythornes Private Client team would be pleased to discuss your circumstances and help ensure that your plans remain fit for purpose in light of the changes ahead.