Private Client Insights

The Autumn Budget, delivered on 28th October 2026, introduced several measures affecting how individuals and families manage, protect and transfer their wealth.

While the headline inheritance tax rules remain largely unchanged, developments affecting pensions, trusts, property income and business disposals deserve attention.

For individuals with substantial estates, investment portfolios or family business interests, the question is not simply how the Budget affects their tax position today, but what it means for the wealth they intend to pass on.

Autumn Budget 2026: Key Takeaways for Private Clients

• Inheritance tax: No major changes to headline rates, but new rules affect the treatment of certain liabilities within trusts.
• Pensions: Most unused pension funds and certain death benefits will fall within the scope of inheritance tax from 6th April 2027, as previously announced.
• Property and savings income: Income tax rates will rise by two percentage points from 6th April 2027, to 24%, 44% and 49%.
• Business disposals: The lifetime limit for Business Asset Disposal Relief will reduce from £1 million to £500,000 from 6th April 2027.
• New Founders’ Relief: Qualifying founders and early investors in certain high-growth businesses may benefit from a 10% Capital Gains Tax rate on up to £10 million of lifetime gains from 6th April 2027.
• Charitable legacies: Technical changes will affect how pension assets are considered when calculating eligibility for the reduced inheritance tax rate available to certain charitable estates.
• Cash ISAs: The £20,000 annual subscription allowance has been retained.

Inheritance Tax, Pensions and Trusts: What Has Changed?

The Budget did not announce a general increase in inheritance tax rates. However, the absence of major headline changes should not be mistaken for an unchanged estate planning landscape.

From 6th April 2027, most unused pension funds and certain pension death benefits will be included within an individual’s estate for inheritance tax purposes.

For families with substantial pension savings, this could materially change the value of their taxable estate and the amount ultimately available to beneficiaries.

The Budget also introduced technical amendments concerning the administration of inheritance tax on pension assets, including provisions allowing certain pension payments to be directed towards inheritance tax liabilities.

Charitable Giving and Inheritance Tax

Estates leaving at least 10% of the relevant net estate to charity may qualify for a reduced inheritance tax rate of 36%, rather than the standard 40%.

The Government has announced technical provisions concerning how pension assets are treated when determining eligibility for this reduced rate.

For individuals who intend to leave part of their estate to charitable causes, it is important that their Wills, pension arrangements and wider estate plans are considered together.

Trust Arrangements

The Budget also announced changes to the treatment of certain liabilities associated with trust property.

These measures, applying to relevant deaths and chargeable events from 28th October 2026, seek to restrict inappropriate deductions when calculating inheritance tax.

For families using trusts to manage or transfer wealth, existing arrangements may warrant review, particularly where borrowing, asset ownership or complex financial structures are involved.

The key consideration: Estate planning should reflect the combined value of property, investments, pensions, business interests and other assets, rather than treating each separately.

Property, Savings and Investment Income: The Implications for Wealth Holders

From 6th April 2027, income tax rates on property and savings income will increase by two percentage points.

The new rates will be:

• Basic rate: 24%
• Higher rate: 44%
• Additional rate: 49%

For individuals receiving substantial rental income or taxable interest, these changes could affect the returns generated by their assets.

Dividend tax rates remain unchanged in this Budget, while the annual Cash ISA subscription allowance remains at £20,000.

What About High-Value Residential Property?

The Government has also provided further details concerning the proposed High Value Council Tax Surcharge, including provisions for discounts, deferrals and exemptions.

For families whose wealth is concentrated in residential property, ongoing ownership costs form part of the wider picture.

From a Private Client perspective, it is also important to consider how properties are legally owned, whether they are held individually or jointly, and how they will pass to the next generation.

Business Owners: Protecting Wealth Beyond the Exit

For entrepreneurs and family business owners, the Budget included two significant Capital Gains Tax developments.

Business Asset Disposal Relief

From 6th April 2027, the lifetime limit for Business Asset Disposal Relief will reduce from £1 million to £500,000.

This may be relevant to business owners considering retirement, succession or the sale of their company.

New Founders’ Relief

The Government has also announced a new Founders’ Relief, intended to support qualifying founders and significant early investors in high-growth, innovative UK companies.

From 6th April 2027, eligible individuals may benefit from a reduced 10% Capital Gains Tax rate on up to £10 million of lifetime qualifying gains.

The detailed eligibility conditions remain subject to technical consultation and legislation.

For business owners, these measures underline the importance of considering the timing and structure of any proposed disposal alongside wider personal and family objectives.

What Happens to Wealth After a Business Sale?

Selling a business is often a significant financial milestone. It can also fundamentally change the nature of an individual’s estate.

Wealth previously held through a trading company may become cash, investments or property. Existing inheritance tax reliefs may no longer apply in the same way.

This raises important questions about how the proceeds should be held, protected and ultimately distributed.

For family-owned businesses, succession planning should also address ownership, control, shareholder arrangements and the interests of future generations.

A successful business exit is one milestone. Ensuring the proceeds are protected and passed on according to your wishes is another.

What Should Individuals and Families Review Following the Budget?

The announcements provide a timely opportunity to revisit existing arrangements, particularly where there have been changes in family circumstances, asset values or ownership.

Five questions are worth considering:

1. Is your Will up to date? Does it reflect your current assets, beneficiaries and intentions?
2. Have you considered the inheritance tax implications of your pensions? Particularly in light of the changes taking effect from April 2027.
3. Are your trusts and asset ownership arrangements still appropriate? Especially where property, investments or borrowing are involved.
4. Do you have a succession plan for your business or investment interests? Including arrangements for transferring ownership and control.
5. Have you made appropriate Lasting Powers of Attorney? Who would manage your affairs if you were unable to make decisions yourself?

These considerations are relevant not only to individuals approaching retirement, but also to those building substantial wealth and looking ahead to the next generation.

Protecting the Wealth You Have Built

At Vyman Solicitors, our Private Client team advises individuals and families on Wills, trusts, estate administration, succession planning and the legal arrangements involved in protecting family wealth.

Our Wealth Preservation Package offers a fixed-fee starting point through an Asset & Family Diagnostic, reviewing estate arrangements, asset ownership, potential inheritance tax exposure and succession considerations.

Whether you are reviewing established arrangements or planning for the future, taking legal advice can help ensure that the wealth you have built is supported by appropriate legal protections.

Discover Vyman’s Wealth Preservation Package

Alternatively, speak to our Private Client team about your individual circumstances.

Disclaimer: This article provides general information based on the Autumn Budget announcements of 28th October 2026 and does not constitute legal, tax or financial advice. Certain measures remain subject to legislation and implementation. The application of tax rules depends on individual circumstances, and independent professional advice should be obtained before taking action.