The Autumn Budget 2025 introduced several changes that could affect wills, inheritance tax exposure and long-term estate planning. While not all expected reforms materialised, key measures in the Autumn Budget point towards tighter reliefs and a continued focus on wealth-based taxation by the government. If you have a Will, own a business or hold agricultural property, now is an important moment to understand what the Budget means for your estate.
What Stayed the Same
Despite endless speculation leading up to the Budget, the main inheritance tax thresholds — the £325,000 nil-rate band and the £175,000 residence nil-rate band — remain frozen until 2031. While unchanged in value, this freeze effectively increases the tax burden over time as property prices and investment values rise, which is known as ‘fiscal drag’.
The Budget also left capital gains tax, gifting rules and the residence nil-rate band untouched. However, HMRC’s enforcement powers have been strengthened, meaning increased compliance scrutiny, particularly where estates involve trusts or complex tax planning.
Key Changes
Business and Agricultural Reliefs
One of the most significant measures in the Budget affects business and agricultural property. From April 2026:
- Only the first £1 million of qualifying business or agricultural assets will receive 100% relief (Business Property Relief or Agricultural Property Relief).
- The new £1 million allowance will be transferable between spouses and civil partners, even if the first death occurred before April 2026.
For families with substantial business or farming assets, this reform could significantly increase inheritance tax exposure unless estate plans are updated.
A Wider Shift Towards Wealth-Based Taxation
Although the Budget did not alter capital gains tax or lifetime gifting rules, the overall direction suggests continued tightening in how wealth and assets are taxed. Individuals with complex estates may find that previous assumptions no longer hold in light of the Autumn Budget 2025.
What the Autumn Budget 2025 Means for Your Will
If you own business assets, agricultural land or have a growing estate, the Autumn Budget 2025 highlights the importance of up-to-date planning. With reliefs now restricted and thresholds frozen, older Wills may not provide the tax efficiency they once did.
A review of your Will following the Autumn Budget 2025 can ensure your wishes are respected, your family is protected and any avoidable tax is minimised.
Contact Us Today
If you’d like advice tailored to your family, business or estate, Rebecca D’Arcy at Chiltern Wills would be delighted to help. You can contact Chiltern Wills on 01494 708688 or through our online enquiry form. Early planning — especially in light of the Autumn Budget 2025 — can make a meaningful difference and provide peace of mind that everything is in good order.
