Donna Brennan at Weightmans says the Autumn Budget tightens rules on property, inheritance and investment income, increasing pressure on families with growing assets and highlighting the importance of clear, long-term estate planning.
Donna Brennan, partner and private wealth lawyer at national law firm Weightmans:
“Today’s Autumn Budget is a reminder that the UK’s tax landscape is becoming more complex for individuals and families seeking to protect and pass on their wealth. For many families, particularly those with property wealth or intergenerational business assets, this means tax is becoming a factor in circumstances that wouldn’t have raised concern even a few years ago. The importance of taking a joined-up approach to planning, one that considers lifetime giving, asset structures and succession goals, has never been clearer.
“Several of today’s announcements will have a direct impact on private wealth planning. The introduction of a new mansion tax adds a new layer of cost for families whose properties have increased in value over time, particularly in London and the South East. This will be felt not only by high-net-worth individuals but by many households who would not traditionally see themselves as wealthy.
“In the inheritance space, the introduction of full agricultural and business property relief transfer between spouses is a positive step, offering greater flexibility in estate planning. But this sits alongside broader changes that continue to restrict long-standing allowances and add to the complexity families face when structuring legacies.
“The confirmed rise in tax on dividend, savings and property income will further reduce the net return on personal wealth, while the introduction of a tax on salary-sacrifice pension contributions above £2,000 introduces a new ceiling on what has been a key tool for long-term retirement planning.
“Together, these changes represent a continued tightening of the tools that families have historically used to manage and pass on wealth. While none of these measures may feel dramatic in isolation, the cumulative impact is growing and will increasingly affect those who previously considered themselves outside the scope of these issues. We continue to advise individuals across the UK who want to ensure that their affairs are in good order. A well-structured estate plan gives families confidence and clarity and avoids difficult decisions being made under pressure or at the wrong time.”
