A mixed bag or a missed opportunity? Experts at Scotts Hall & Birtles have their say in the aftermath of the Autumn Budget.

As the dust begins to settle on this week's Autumn Budget, directors Alastair Birtles and Steve Scott pored over the finer details of the Chancellor's announcement to find the details that matter most to their clients at Scotts Hall & Birtles.

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Property market

What happened: The High Value Council Tax Surcharge, otherwise known as the ‘Mansion Tax’, will result in the owners of properties worth over £2m paying a surcharge of £2,500, while those owning properties worth over £5m face a surcharge of £7,500. These surcharges will both be paid in addition to the current level of council tax.

Alastair Birtles, director and solicitor, said: “As with all conveyancing there is a top and a bottom to a conveyancing chain. The so-called Mansion Tax could impact not only the wealthy clients, but the housing market as a whole, as clients who may have been looking to sell and upsize, opt against it due to the impact of the tax.

“It may also impact those wanting to downsize from a higher value property due to purchasers deciding against purchasing such properties. All in all, I can see a situation where this causes the property market to stagnate.

“It is also disappointing not to see a change to the current Stamp Duty Land Tax. It’s not that the lack of change will impact the current state of the market - I think individuals and companies will buy as before - but the disappointment is more that if an appropriate change had been proposed it could have given a much needed kick-start to the docile market. For this reason, I think this is something of a missed opportunity.” 

Inheritance tax

What happened: From April 2026, the first £1m of agricultural and business assets will continue to qualify for 100 per cent inheritance tax relief, while any value above that will attract only 50 per cent relief. The full £1m allowance will now be transferable between married couples, which means any unused relief can be passed to a surviving spouse rather than lost on first death.

Steve Scott, director and solicitor, said: “A bit of good news on that concession. It makes the planning for farmers and business owners a bit easier now there is no ‘use it or lose it’ issue on first death of a married couple.”

Income tax and dividends

What happened: Income tax thresholds will be frozen until the 2030-31 tax year. The income tax rate on dividend income will increase by two percentage points from April 2026, to 10.75% for basic rate taxpayers and 35.75% for higher rate taxpayers. The additional rate will remain at 39.35%.

Alastair said: “There is clearly a possibility that the freeze on the thresholds will result in clients paying more income tax as they enter the higher bandings. This will cause concern to some - especially those considering upsizing their home, for instance, who may have to reassess affordability.”

Steve added: “I also see that dividend rates are going up which is a big issue for the self-employed operating through a limited company.”

Landlords

What happened: A 2% increase to the basic, higher, and additional rates of property income tax will take effect from April 2027. The revised rates will be 22%, 42%, and 47% respectively.

Alastair said: “Increased taxes on rental income and changes related to the Renters’ Rights Act continues to create fear and uncertainty for some landlords. This, coupled with second property Stamp Duty Land tax liabilities, is deterring individuals from investing in Buy to Let properties.”

Steve said: “We are seeing a lot of people leaving the rental market and the increased tax on rental income will make this worse. I can see a continued fall in demand for Dales properties and this will add to the current stagnation.”

If you have queries or concerns about how the changes might affect you and your affairs, get in touch with our team today. Call 01969622227 or email info@shblegal.co.uk 

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