The Chancellor’s latest Autumn Budget was presented against a backdrop of rising national debt, sustained pressure on household finances and the Government’s commitment to a policy of fairness.
While Rachel Reeves avoided some of the most dramatic tax reforms anticipated, the measures announced will have a wide impact on employers, families, property owners and businesses.
Here are some of our key takeaways from the Autumn Budget:
Many of these changes intersect directly with the services offered by our team of legal experts at Hethertons Solicitors.
To help you get a better appreciation of what lies ahead, we will look at these measures in more detail.
Employment law and payroll: Rising wage rates and employer pressure
One of the most immediate challenges for employers is the further rise in the National Minimum Wage and National Living Wage from April 2026.
Coming so soon after previous increases, these higher statutory rates will add both operational and financial pressure on businesses.
Employers will need to review contracts, budgets and workforce planning to ensure compliance and to avoid potential disputes.
These rising costs may also affect redundancy decisions, restructuring, recruitment strategies and the viability of certain roles.
Our employment law specialists can help employers understand their obligations and prepare for the changes to avoid unexpected legal and payroll complications.
Property owners and landlords: Higher taxes for investors
The Budget introduced a number of substantial tax changes affecting landlords and property investors.
New standalone property tax rates will apply from April 2027, with the basic rate rising to 22 per cent, the higher rate to 42 per cent and the additional rate to 47 per cent.
Combined with the freeze on Income Tax thresholds and increased taxation on income from savings and dividends, many property owners will face higher liabilities.
For some this may prompt a decision to exit the property market and dispose of all or some of their existing portfolio.
Whilst no rash decision should be made without seeking professional tax advice, quick and efficient property sales could become essential.
The arrival of the so-called ‘mansion tax’ for homes worth more than two million pounds will also be a consideration for high-value property owners and those looking to purchase new homes.
These changes will influence decisions around buying, selling, restructuring portfolios or passing property to family members.
Our residential property teams can advise on how these reforms may affect long-term strategy and support you with future disposals.
Family law and household finances
The removal of the two-child benefit cap may help to alleviate additional pressure on families already navigating rising living costs.
However, for separated parents or those negotiating maintenance, this may lead to more frequent variations and heightened conflict in some cases over who benefits from these changes.
Wider household financial pressures from the Budget, including higher taxes through changes to dividends for directors, may also affect living arrangements, childcare responsibilities and the stability of family dynamics.
A reform to salary sacrifice pension schemes, which will now see their National Insurance relief capped to the first £2,000, may affect how people save for later life and as a result, the pensions available under financial settlement in future.
Our family law team is available to assist those who anticipate the need to revisit existing arrangements or who require guidance as their financial circumstances change.
Private client and rural estates
Reforms to Agricultural Property Relief and Business Property Relief remain a major concern for rural clients, farmers and owners of family businesses.
While the confirmation that unused allowances from these reliefs can now be transferred between spouses or civil partners offers some reassurance, the upcoming restrictions that only provide 100 per cent tax relief on the first £1 million will require many families to consider their estate plans.
Succession planning for agricultural and business assets is becoming more time-sensitive, particularly where clients wish to make full use of existing reliefs before April 2026.
Our private client specialists can help clients review wills, trusts and long-term plans to ensure they remain tax efficient in light of the new rules.
Supporting clients through change
This Budget confirms a continued shift towards higher taxation for individuals and businesses.
Whether you are an employer facing rising wage obligations, a family dealing with benefit changes, property owners absorbing new tax rates or rural businesses preparing for relief reform, early planning is essential.
As a full-service law firm supporting employers, families, property owners and rural businesses, our teams are already working with clients to prepare for these changes.
To find out how we can help you in relation to the Government’s latest measures and how they affect your personal and commercial circumstances, please get in touch.
This update provides general information and should not be treated as legal or tax advice. Professional advice should be sought for your specific circumstances.
