With the 2025 Autumn Budget now imminent, businesses and families alike must brace for potential changes to tax reliefs, inheritance tax, and property laws. These changes could significantly impact both personal and business succession plans, creating uncertainty about how assets will be passed down or sold in the future.

Now is the time to book a review of your estate and succession strategy to ensure you’re prepared for whatever changes the government may introduce in the Budget.

Key Speculations to Watch Out For

1. Property and Housing Taxes: What Could Change?

The property sector is under intense scrutiny this year, with the government considering a major overhaul of Stamp Duty Land Tax (SDLT). The proposal is to replace SDLT with a regular, value-based property tax aimed at higher-value properties. This could have a serious impact on businesses and families with significant property holdings, including business premises, residential homes, or second homes.

In addition, the government may introduce changes to Capital Gains Tax (CGT), particularly if they align CGT rates with income tax rates. If this happens, the tax burden on the sale of business or personal assets could increase significantly, particularly when passing assets on to the next generation. Speculation also suggests potential cuts to reliefs like the residence nil-rate band, which reduces inheritance tax on family homes, and Business Property Relief (BPR), which allows businesses to pass on assets more efficiently.

2. Targeting Wealthier Earners

The government may focus on higher earners in its upcoming Budget. Reports suggest that changes could affect family trusts, partnerships, and business owners. If reliefs are reduced or tax treatment changes, the tax burden on high earners and business owners could increase, particularly when transferring wealth or assets to the next generation. For businesses, this could mean higher inheritance tax bills or changes to tax reliefs for business assets.

3. CGT and Inheritance Tax: Stealth Changes Ahead

Capital Gains Tax (CGT) is expected to remain a key area of focus in the Budget. Aligning CGT rates with income tax rates would dramatically increase the tax burden on the sale of assets, including second homes, businesses, or property. Furthermore, the government may reduce the annual CGT exemption or restrict Business Asset Disposal Relief. These changes could affect how businesses are sold or passed down to heirs, making careful planning essential.

Inheritance Tax (IHT) also remains a key area for potential reform. The government may tighten reliefs such as Agricultural Property Relief (APR) or Business Property Relief (BPR), which could increase the tax burden on farming or business assets. Similarly, changes to allowances on ISAs or other savings vehicles might quietly erode their real value over time, leading to a higher tax burden on your estate.

What This Means for Business and Estate Planning

• Succession Planning Under Pressure: If reliefs like BPR or APR are reduced, the tax burden on businesses and estates could increase significantly. Early planning could help save your heirs thousands, if not millions, in tax liabilities.
• Property Taxes Could Hit Hard: Changes to property tax laws could mean that businesses or properties with substantial value may be subject to new taxes, affecting liquidity and estate distribution.
• Liquidity Will Be Key: Ensure that your heirs or successors have the liquidity to handle any increased tax burden without the need to sell critical business or personal assets.
• Succession Decisions Cannot Be Delayed: With potential changes on the horizon, now is the time to make important decisions about who will take over your business or manage your estate. Delaying this could complicate matters, especially with potential tax changes looming.

Protecting Your Legacy: Act Now

Your legacy is more than just assets—it’s the future of your family and business. Whether you’re passing down a family business, agricultural assets, or personal wealth, protecting your legacy requires careful planning.

At McHale & Co Solicitors, we’ve worked with business owners and families for over 25 years, helping them manage the challenges of succession planning, inheritance tax, trusts, and more. Whether it’s reviewing your business succession strategy, ensuring your will and trust documents are up to date, or advising you on tax-efficient gifting strategies, now is the time to act.

If you’d like to review your estate and business planning, or simply have a confidential chat about your options, get in touch with us today.

McHale & Co Solicitors

Speak to a member of the Private Client team on 0161 928 3848 or email us at mch@mchaleandco.co.uk

Disclaimer

This article is for general information only and does not constitute legal or tax advice. Inheritance Tax laws, including APR and BPR, are subject to change, and the impact will vary depending on individual circumstances. You should always seek professional advice before making decisions about your estate or financial planning.

Susie Roberts – Head of Wills, McHale & Co Solicitors, Altrincham