This year’s Budget introduces a range of changes that could affect your personal finances, family arrangements and long-term planning. From new property taxes to frozen allowances and adjustments in benefits and income tax, the picture can feel complex. Our team has reviewed the key announcements and summarised what they may mean for you and your future.
Litigation
The new Mansion tax could give rise to disputes as to how it should be paid between co-owners of Property. Unlike council tax the owner not the occupier is liable, and it is likely all legal owners will be held jointly and severally liable. Therefore, if you own a smaller share in a property you may want to check you have a clear declaration of trust between you and your co-owners setting out how the outgoings of the property will be paid.
Jill Lipscombe, Legal Director and Head of Litigation
Property
Although there was speculation about major property taxes, such as Stamp Duty and Local Housing Allowance, they remain unchanged in this year’s Budget announcement. However, changes such as the introduction of a new mansion tax on properties valued above £2 million have come into force, as well as an increase in property tax. This will place additional pressure on high-value households and those letting out residential property.
Sheena Aston, Partner and Head of Property
Company & Commercial
The Autumn budget did not implement a few of the press-led speculation of hikes in tax, however, it was still designed to generate tax receipts to plug the alleged enormous “black hole” with individual taxpayers bearing the brunt of being “asked to contribute a little more” (as if they have a choice).
From a small business perspective, it was pretty neutral, although further increases in the national minimum wage from April 2026 may affect many. For those in the Retail, hospitality and leisure sectors in premises with a rateable value of £500K or below, there will be a slight decrease in business rates, which is good news for them but bad news for any business in premises with a rateable value of over £500K, as their business rates will increase to fund the shortfall. Various changes to the Enterprise Management Investment (EMI) rules are welcome improvements and make this type of employee share scheme more attractive (although EMI’s benefits are designed for the long run and so are of limited application).
Business owners who partially remunerate themselves through dividends will be worse off with a further increase in dividend income tax rates. I am not too sure how this helps the Government’s desire to encourage retail investors.
There were many small tweaks across a wide range of taxes, with no big, headline-grabbing, easy-to-grasp changes, making it difficult to predict the outcome. Time will tell whether this will help grow the economy.
Alec Brooks, Partner and Head of Company & Commercial
Family
The removal of the two-child benefit cap offers support to larger households, while increases to benefits and childcare-related payments may ease some of the financial pressure many are facing. However, freezes to income-tax thresholds and higher taxes on savings, investments and rental income mean that many families could still find their overall cost of living rising. For separating couples, these financial shifts can influence everything from maintenance discussions to housing options.
Rob Parker, Partner and Head of Family
Private Client
From a Private Client perspective, the Budget announcement states that tax thresholds, including personal allowance, tax bands, and national insurance, have been frozen until 2030/31. Whereas there will be an increase in tax rates on savings, dividends, and property income. Pensions remain a key planning point, especially as frozen allowances and the potential loss of the Residence Nil-Rate Band could push more estates into the IHT net by 2027. It is the perfect time to review pensions, Wills, and estate plans to ensure everything remains tax-efficient and fit for the future.
Zafna Hassen, Legal Director and Head of Private Client
Employment
There are several significant changes coming that will affect employers and employees, including changes to payroll, pension schemes, and workforce planning.
From 1 April 2026, the National Living Wage rises by 4.1% to £12.71 per hour for workers aged 21 and over. The National Minimum Wage for 18–20-year-olds jumps by 8.5% to £10.85 per hour, while rates for 16–17-year-olds and apprentices increase by 6% to £8.00 per hour.
From April 2029, only the first £2,000 of employee pension contributions through salary sacrifice each year will be exempt from National Insurance Contributions (NIC). Previously, all salary sacrifice pension contributions were exempt from NICs, making them a tax-efficient way to boost retirement savings.
Income tax thresholds are staying frozen until 2030-31. The personal allowance sits at £12,570, the higher rate threshold at £50,270, and the additional rate at £125,140. As wages rise over the next few years, more employees will be pulled into higher tax bands. Their gross pay might go up, but their take-home pay won't keep up because more of it gets taxed at a higher rate.
Hannah Lockyer, Legal Director and Head of Employment
Every individual and family will experience the Budget’s impact differently. If you are unsure what the changes mean for your circumstances, our solicitors are here to provide tailored guidance and help you plan ahead.
Please get in touch on 01256 844888 or enquiries@lambbrooks.com