Is it all doom & gloom in the world of tax?
At the time of writing this article, here at Mostons, we are waiting to absorb the impact of the November Autumn budget statement by the Chancellor. It is fair to say that most commentators are agreed that there will be significant changes that will be aimed at increasing tax revenue for this Government.
Speculation is rife. We have seen various suggestions recently that are likely to impact many of our clients, however, not all of them will be implemented and we will look to ways of bringing down the individuals and companies tax burden.
In this current year and from the next two successive tax years there have been significant changes to Inheritance Tax rules.
2025-26
This major change to non-domicile from 6 April 2025 mean that HMRC look at long term residence. IHT will apply to an individual’s worldwide assets if resident in the UK for 10 of 20 tax years before the year of their death or asset transfer.
2026-27
Business & agricultural property relief of 100% will be capped at £1m per person. Amounts over £1m will receive 50% relief.
2027-28
From 6 April 2027, most unused pension funds and death benefits will be included in a person’s estate for IHT calculations, a change from the previous tax-free treatment. The government confirmed in July 2025 that personal representatives, not pension administrators, will be liable for reporting and paying the IHT due on unused pension funds and death benefits. IHT is payable 6 months after the month of death. This is highly likely to be problematic for most estates that include a pension.
It is quite possible that Rachel Reeves is looking at life-time gifts, introducing limits on gifting and restrictions on the seven-year rule.
It has been suggested that capital gains tax (CGT) could be introduced on people’s main homes if they sell for more than a set amount. Currently, CGT is only applied when you sell an additional property, not your main home. Again, for the moment, this is pure speculation.
Landlords may also be targeted with National Insurance on rental profits.
Savers may also be in the cross hairs. Earlier this year the government was expected to announce a cut in the amount savers can invest in ISAs. Whilst muted plans were shelved, this may well be revisited this autumn.
The Government always pledged to not raise taxes on the working person. The Prime Minister last year indicated that people with assets do not fit his idea of working people. Those individuals with shares and assets will face a heavier tax burden now and in the future.
At Mostons we are working hard to support our clients through these changes. Our clients receive a balanced approach to their person and business wealth, whilst working within the rules to minimize the tax burden.
Paul Moston is a Chartered Accountant with decades of experience. Paul is also authorised by The ICAEW to advise on matters related to probate and estates. This is valuable support that we currently only provide to existing clients, however, if you would like to talk to Paul about your family’s exposure to IHT, CGT, Income Tax or National Insurance we offer a 30min free initial consultation to put you mind at rest.
To get in touch:
Call 0208 886 1884
Email office@mostons.co.uk
We have been at the heart of Winchmore Hill for 16 years. Find us in the building with the black door, online or on social media. The team at Mostons wish you a happy, peaceful and tax free holiday period and a prosperous and healthy 2026
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