Budget: EMG Solicitors’ review

Following Chancellor Rachel Reeves’s Autumn Budget today (Wednesday, November 26), we spoke to some of the team at Durham-headquartered EMG Solicitors about their views on the budget announcements, and what impact they will have for the firm’s clients.

The following EMG colleagues took part in the conversation:

• Andrew Allon, senior associate in residential conveyancing
• Stephanie Rodgers, departmental director in wills, trusts and probate
• Natalie Spedding, associate in dispute resolution
• Graham Shannon, associate in dispute resolution

Andrew said: “In terms of the property market, we’re not going to see any significant changes from the announcements made in the budget. 

“The main thing was the council tax surcharge on properties in England worth more than £2 million. 

“I don’t think that’s going to have a massive impact on the market itself. 

“What was surprising is that we didn’t hear anything on stamp duty, or other initiatives that support people onto the property ladder.

“What will have an impact going forward is the freeze on income tax as that directly affects how much spending power people have.”

Stephanie said: “One of the biggest surprises was the lack of changes to inheritance tax and lifetime giving. 

“I think that’s something many people, including the clients we support, were expecting.

“One announcement that was made was the ability to pass assets that attract agricultural property relief and business relief at 100 per cent between spouses without restriction. 

“Last October it was announced that transfers of such assets would be capped at £1 million from April 2026, so that will make quite a big difference for family farmers and family businesses. 

“It was also announced that any payments made via The Infected Blood Compensation Authority (IBCA) will now be free of inheritance tax, regardless of circumstances, which there has been a lot of campaigning about.”

Natalie said: “I’d agree with Andrew that we’re not going to see any major changes to the property market as a result of the budget. 

“We’ll still support clients with disputes over wills and other related matters. 

“I think if we’d seen changes to things like inheritance tax rates and relief then it would be a different story.”

Graham said: “For me, two things really stood out. 

“One, employers will have to pay a higher minimum wage. 

“And two, from 2029, the amount employees can contribute to their pension via salary sacrifice before paying National Insurance contributions will be £2000 a year.

“We knew tax rises were coming so it doesn’t come as a total surprise. 

“It’s likely this will hit smaller employers harder, and it could lead to people being laid off, or being made redundant altogether.”

What the budget means for EMG’s clients

Andrew added: “I think for the clients we support in residential conveyancing, there’s little that should cause concern from today’s budget. 

“Some people were hoping for changes to stamp duty thresholds, but everything has remained quite stable in terms of the property sector.

“I would have liked to have seen some stamp duty reform, something that lessens the pressure on additional property purchases.”

Stephanie added: “A lot of clients we work with had already taken steps prior to the Budget in anticipation of expected changes regarding lifetime giving, but there have actually been no major changes. 

“What I would say is that people are often very concerned about inheritance tax, but that shouldn’t be the sole driver of your decisions.

“There are other important things to consider in succession planning.

“Other announcements in the budget that will have an impact for the clients we support is the two per cent increase in the rate of interest on dividends, property and savings income.

“The Government also announced it is limiting the amount under 65s can put into a Cash ISA to £12,000 from April 2027. 

“The remaining £8000 of the £20,000 annual allowance will be reserved for investments.”

Graham added: “For the business owners we work with, I’d be saying first work out the financial impact of the increase to the national minimum wage. 

“Then it’s important to consider the changes to salary sacrifice from 2029. 

“One thing the Government did announce today was a 100 per cent increase to the employment allowance, which is the point at which employees start paying national insurance. 

“That’s doubled to £10,500.”

The impact the of budget announcement

Stephanie concluded: “It’s not as eventful a budget as we were expecting. 

“The ability to transfer unlimited assets at 100 per cent relief between spouses on business and agricultural property will be welcomed. 

“I think it opens up tax planning possibilities, which will hopefully take a little bit of pressure off in terms of inheritance tax and succession planning.

Graham added: “I’d agree, I think it has been a bit of a damp squib. 

“There were a lot of reports in the media trailing possible announcements, and a lot of that was quite doom and gloom. 

“The fact it hasn’t been particularly controversial may be good in shaping confidence.”

The announcements in the budget will undoubtedly impact some clients more than others. We would urge anyone that has questions relating to the matters discussed above, or those included in the wider Budget, to please get in touch. 

EMG Solicitors’ dedicated and experienced team are always on hand to offer support and advice.

www.emgsolicitors.com

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