On 28th October 2026 the Chancellor, John Healey, delivered his first Autumn Budget.
Business Property Relief & Agricultural Property Relief
Despite speculation ahead of the Budget, there were no further amendments to Business Property Relief or Agricultural Property Relief. This will provide greater certainty for business owners and families who are succession planning for the future. Succession plans should be reviewed over time as wishes for the business may change. Our specialist Will Solicitors at Johnson Astills would be happy to discuss your wishes as to what you would like to happen to your business on death and ensure that your Will reflects these wishes.
Nil Rate Band & Residence Nil Rate Band
The nil rate band, which is the amount everybody can leave free of inheritance tax, remains at £325,000 per person. The nil rate band has been frozen since 2009 and will now stay frozen until 2031.
The residence nil rate band remains at £175,000. This is an additional allowance available for those who leave their family home to direct descendants, i.e. children or grandchildren. The residence nil rate band has not changed since 2020. With house prices rising, the fact that the residence nil rate band has not been increased since 2020, means that for many people more of their wealth will potentially be above the inheritance tax threshold and be subject to inheritance tax on death.
Pensions
The Finance Act 2026 confirms that from April 2027 most unused pension assets will come into people’s estate for inheritance tax purposes. For many generations part of family planning has involved putting money into pensions, it has always been considered one of the most tax efficient ways to pass money to family members on death. As a result of the pension changes in April 2027 then for many people more of their wealth will potentially be above the inheritance tax threshold and be subject to inheritance tax on death.
If your estate planning involves pensions, business or agricultural relief or existing inheritance allowances then now is the time to review Wills that you have in place, or prepare a Will if you do not already have one. Planning in advance will make administering your estate easier upon your death and ensure that your assets pass to the people that you would like to benefit.
If you wish to prepare a Will, review an existing Will or write a new Will then our expert solicitors at Johnson Astills would be pleased to assist you with this. You can call us at our office in Leicester or our office in Loughborough. Alternatively, you may prefer to email us at legal@johnsonastills.com or fill in our enquiry form.
