How solicitors and financial planners can support clients in light of the Autumn Budget

The 2025 Autumn Budget introduced a number of measures that could have a direct impact on your clients.

Many of the reforms may prompt them to seek professional advice to ensure their long-term plans remain on track.

Financial planners can help clients navigate changes such as the freeze on Income Tax thresholds, new Cash ISA limits, and adjustments to pension contributions. At the same time, there are several areas where assistance from both solicitors and financial planning professionals may be needed.

Read on to find out how our sectors can support clients in light of the Autumn Budget.

Clients may need to revisit their estate plan due to the Inheritance Tax freeze

In the Budget, Reeves confirmed that the freeze on Inheritance Tax (IHT) thresholds will extend to April 2031. This means that by 2031, the standard nil-rate band IHT allowance will have been unchanged for 22 years.

This long-term freeze continues to pull more estates into the scope of IHT as asset values rise. Data from Statista shows that IHT receipts have reached record highs for four consecutive years. Indeed, the only tax years since 2010/11 that didn’t see record high IHT revenue were those between 2019 and 2021, which highlights the impact of fiscal drag.

Taken together with the additional IHT reforms announced in the 2024 Budget, this latest freeze means many clients may now need to revisit their estate plans to ensure their arrangements remain efficient and aligned with their wishes.

Financial planners can help clients assess their projected estate values and explore strategies that could help improve their efficiency, such as lifetime gifting, Business Relief, or putting assets in trust.

Solicitors can support clients by reviewing their wills, advising on trust arrangements, and ensuring that estate planning documents remain legally compliant while reflecting their wishes.

You can read more about the upcoming IHT changes in our previous article on the subject.

Business owners planning to sell could be affected by a reduction in Capital Gains Tax relief

The Budget also introduced significant changes for business owners, particularly those considering succession or exit strategies.

Key announcements included that statutory pay rates will rise, apprenticeships will be fully funded, and businesses newly listed on the London Stock Exchange will benefit from Stamp Duty relief.

However, perhaps the most significant measure for business owners is that there will be a major reduction in Capital Gains Tax (CGT) relief for Employee Ownership Trusts (EOTs).

The previous 100% CGT relief available when selling a business to an EOT was cut to 50% with immediate effect. For many business owners who had viewed EOTs as a tax-efficient route to succession, the reduction may significantly alter the appeal of this option.

Given the scale of these changes, business owner clients may need to revisit their succession plans.

Financial planners can help them model different exit scenarios, assess the long-term impact of reduced relief on their post-sale goals, and explore alternative strategies for ensuring the sale remains efficient.

Meanwhile, solicitors can review the structure of the sale and make sure the legal aspects and tax strategy are compliant. They can also draft and review sale agreements and assist with establishing trusts or transferring assets.

You can read more about how we can support business owners in creating succession plans in our previous article on the topic.

The tax rates on dividends, savings, and property income will rise by two percentage points 

Reeves confirmed that tax rates on dividends, savings, and property income will rise by two percentage points for most.

From April 2026, Dividend Tax rates will rise to:

• 10.75% for basic-rate taxpayers
• 35.75% for higher-rate taxpayers.

The rate for additional-rate taxpayers will remain unchanged at 39.35%.

Then, from April 2027, tax on property and savings income will also rise, moving to:

• 22% for basic-rate taxpayers
• 42% for higher-rate taxpayers
• 47% to additional-rate taxpayers.

Clients with significant dividend income or rental portfolios are likely to see a noticeable increase in their tax bills.

This may influence how they take profits from their business and structure their portfolios, and whether certain properties or investments remain worthwhile over the long term.

In light of this change, financial planners can help clients reassess how they draw income and explore more efficient alternatives. They can also model how the rate increases affect clients’ long-term goals.

Solicitors can support clients who want to make changes to their business contracts or property structures. This could involve updating shareholder agreements, reviewing property arrangements, or ensuring that any restructuring of rental contracts is compliant.

Clients with high-value properties could be hit with a new “mansion tax”

Reeves also confirmed a new property surcharge aimed at the top 1% of homes.

The tax will be based on property value, with four bands beginning at £2,500 a year for homes worth between £2 million and £2.5 million and rising to £7,500 for those worth over £5 million.

For clients with high-value properties, this could considerably increase their annual costs. Retirees who are asset-rich but cash-poor are the most likely to be affected.

Financial planners can help clients review how the new charge fits into their wider financial plan, and what it could mean for their retirement income and estate planning.

Solicitors can support clients if they’re considering selling or downsizing to make sure the new charge doesn’t adversely affect their long-term plans, particularly in retirement.

Get in touch

To find out more about how our sectors can work together for the benefit of our mutual clients, get in touch.

Email info@fbwealth.co.uk or call us on 0333 1122211.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, tax planning, or trusts.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.