What Today’s Budget Means for Families and Individuals

• Posted onOctober 30, 2024

Following the budget announcement today Robert Selwood Board Director | Joint Head of Private Client gives their perspectives on what this means for families and individuals.

“The impact of the Budget, with changes to inherited pensions, Agricultural Property Relief and Business Property Relief, will considerably impact the personal wealth of modern-day families.”

Key Budget Changes Affecting Personal Wealth

After months of trepidation, the Chancellor has now delivered the long-awaited Budget and as expected, the impact will be considerable to the modern-day family in terms of personal wealth.

Inherited Pensions and Estate Planning

Although the inheritance tax threshold currently in place will be extended until 2030, we will now see inherited pensions being included in an individual’s estate for inheritance tax purposes from 2027.

Changes to Agricultural and Business Property Relief

Reforms to Agricultural Property Relief and Business Property Relief. From April 2026, the first £1million of combined business and agricultural assets will continue to attract no inheritance tax at all, but for assets over £1million, inheritance tax will apply with 50% relief, at an effective rate of 20%.

Increased Capital Gains Tax Rates

The rates of Capital Gains tax will also increase from 10% to 18% and 20% to 24% for the lower and higher rate, respectively.

The inclusion of inherited pensions and the proposed change to land subject to Agricultural Property Relief will see an increase in the number of estates that would otherwise have not fallen foul of inheritance tax.

Why Early Estate Planning is Essential

The importance of early estate planning remains prominent. Leaving things to chance and not seeking advice in terms of your estate planning with the rise in Capital Gains and as to how your estate will eventually devolve in respect of inheritance tax would, metaphorically speaking, be comparable to playing with fire, even for those of us with only relatively modest sized estate.

Safeguarding Your Wealth for Future Generations

Seeking the opportunity to review your personal wealth and estate early on in life will provide time to plan and mitigate any potential tax liabilities that might otherwise arise during your lifetime and upon death. Such planning can help to safeguard your personal estate and wealth as best as possible, not only for you but for your loved ones.

If you’d like guidance on estate planning and managing your affairs, please reach out to our team. You can email us at contact@wspsolicitors.com or complete our enquiry form on the website to get started. We’re here to help you secure your financial future.