IHT and CGT key takeaways after the Autumn Budget
The Autumn Budget on 26 November 2025 kept the rumour mill going (almost) until 12:30 on the day. In the end, IHT and CGT remained largely unchanged, despite loud speculation over sweeping hikes and reforms to build on seismic changes from the October 2024 Budget. That said, the headlines underplay a tightening reality.
The IHT nil rate band stays frozen at £325,000 until April 2031, extending the fiscal drag that quietly pulls more estates into charge. Whilst only c. 4% of estates pay IHT, this unpopular tax will be a consideration for a greater number of estates over time, particularly where property and asset values have appreciated.
Crucially, for private business owners and farmers, the 2025 Budget offered no reversal of, or meaningful reform to, October 2024's significant curbs to IHT reliefs from April 2026. The only slight concession in this regard being the transferability of the £1m allowance between spouses, though this allowance has already been frozen until April 2031 before its introduction! The reality is a materially tougher landscape for business property relief (BPR) and agricultural property relief (APR), where qualifying criteria and scope are narrowing and certainty is harder to achieve.
In this context, timing is more important than ever. With no rise to CGT rates, there is a closing window to restructure ownership, lock in reliefs where available, and consider strategic succession planning before the new IHT restrictions fully bite in April. For families with trading businesses or farming land, the next few months are critical for refining governance, clarifying what qualifies for relief, and avoiding last‑minute restructuring under pressure.
"Despite significant concerns around CGT and IHT rising, this bit of the fiscal “pick and mix” shop remains relatively vanilla with few changes to what we knew already, as the Chancellor clearly got the “bad news” out in her first Budget last year."
