Following the Chancellor’s Autumn Budget announcement on 28 October 2026, we wanted to share an overview of the key changes and what they could mean for you.
This year’s Budget includes important announcements affecting property owners, landlords and first-time buyers, alongside changes to Inheritance Tax and estate planning that could influence how families protect and pass on their wealth.
We’ve highlighted the key developments below, including what they could mean for your property, your family and your financial future, as well as some welcome measures to support households.
We hope you find this update useful and, as always, please don’t hesitate to get in touch if you have any questions.
How the Budget affects landlords, property owners and buyers.
The Autumn Budget 2026 reinforces the importance of planning ahead when it comes to passing on your wealth. Much of the policy changes from previous budgets remain in place, with changes to Inheritance Tax rules meaning that from April 2027 many unused pension funds and certain death benefits will be included when calculating the value of an estate for Inheritance Tax purposes. This could have significant implications for families who have previously relied on pensions as a tax-efficient way of passing wealth to future generations.
Owners of higher-value residential properties may also be affected by the Government’s plans for a High Value Council Tax Surcharge. Depending on the value of a property and the rules that apply, this could mean additional annual costs for some homeowners. Buyers considering higher-value homes should be aware of these potential future expenses when planning their purchase.
Whether you’re buying your first home, moving up the property ladder, selling a property or managing a rental portfolio, understanding the wider financial and legal implications is important. At Taylor Emmet, our residential conveyancing and property specialists can guide you through the legal aspects of your next move and help you make informed decisions.
What pension and inheritance changes mean for protecting your legacy.
The Autumn Budget 2026 reinforces the importance of planning ahead when it comes to passing on your wealth. Changes to Inheritance Tax rules mean that, from April 2027, most unused pension funds and certain pension death benefits will be included when calculating the value of an estate for Inheritance Tax purposes. This could have significant implications for families who have previously relied on pensions as a tax-efficient way of passing wealth to future generations.
The changes may mean that more estates become liable for Inheritance Tax, or that existing liabilities increase. For individuals with substantial pension savings, property or other assets, now may be a sensible time to review existing arrangements, including wills, trusts and pension beneficiary nominations. It’s also important for executors and families administering an estate to understand how changes to pension rules could affect the probate process.
The Budget also outlines further increases to the tax payable on savings interest and property income. Following an earlier proposal to increase tax rates by 2 percentage points from 6 April 2027, the latest measures propose a further 2 percentage point increase, bringing the total proposed rise to 4 percentage points compared with current rates. These changes could have financial implications for individuals receiving income from savings or rental properties, particularly those who rely on this income in retirement or as part of their wider financial planning. Reviewing existing investments, property arrangements and tax liabilities may therefore be an important consideration when planning for the future.
Estate planning is about more than tax. It’s about making sure your wishes are respected and your loved ones are provided for. Our Wills, Trusts and Probate team can help you review your arrangements, understand the legal implications of the changes and put appropriate plans in place for the future.
Business rates, succession planning and employment costs.
The Budget also introduces Founders’ Relief, aimed at individuals who have established or invested early in UK companies that have demonstrated sustained high growth. Subject to meeting specific conditions relating to the duration and size of their shareholdings, qualifying individuals will benefit from a reduced Capital Gains Tax (CGT) rate of 10% on eligible disposals, up to a lifetime limit of £10 million per individual. As the limit applies individually, multiple shareholders in the same company could potentially benefit from the relief. Founders’ Relief will apply to qualifying disposals made on or after 6 April 2027, making it an important consideration for founders and early investors planning their future exit strategies.
For business owners thinking about retirement, selling their company or passing it on to the next generation, changes to Business Asset Disposal Relief could have important financial implications. The Government has announced a reduction in the lifetime limit for this relief from £1 million to £500,000 from April 2027, potentially increasing the tax payable on qualifying business disposals. This makes early succession planning, professional tax advice and appropriate legal arrangements particularly important.
For self-employed individuals, the Budget also brings potential welcome news, with an announced increase in the Trading Allowance from £1,000 to £3,000 from 6 April 2027. This allowance can be particularly useful for those with few day-to-day business expenses, offering a simpler alternative to claiming actual expenses. The increase could help reduce taxable income and ease the administrative burden for qualifying individuals.
Employers will also need to prepare for increases to the National Living Wage and other minimum wage rates from April 2027. These changes could increase staffing costs and make it a good time for businesses to review payroll arrangements, employment contracts and compliance with minimum wage legislation.
Whether you’re growing your business, managing employees or planning your exit, Taylor Emmet’s Commercial and Employment teams can provide practical legal advice to help you navigate change and plan confidently for the future.
Some welcome news for households
A helping hand for first-time buyers
There was welcome news for those hoping to get onto the property ladder, with the Government confirming its new Your First Home scheme. From April 2027, eligible first-time buyers in England will be able to purchase qualifying new-build homes with a deposit as low as 2.5%, supported by a 20% Government equity loan that is interest-free for the first five years. The scheme is expected to open for applications in February 2027.
The Government also announced a new First Time Buyer ISA, launching in April 2029, offering a 25% Government bonus towards a first home. Meanwhile, changes to the existing Lifetime ISA rules will reduce the withdrawal charge from 25% to 20% for qualifying first-home purchases above the current £450,000 property price cap from 29 October 2026.
£100 energy payment for millions of households
To help with rising household costs, the Government has announced a £100 Household Energy Payment for households in Council Tax bands A to D in England. The payment will be delivered through local councils from January 2027, benefiting up to 20 million households.
There is further good news for energy bills, with the temporary removal of VAT on domestic electricity extended until July 2027. The Government estimates this will reduce the annual Ofgem energy price cap by around £50 in April 2027.
Support for motorists
Drivers will also benefit from the extension of the 5p fuel duty cut for a further six months, alongside a delay to the planned inflation-linked increase until July 2027. The measures are intended to help households and businesses manage the ongoing cost of travel.
