Chancellor John Healey delivered his first Autumn Budget on 28 October 2026. While it avoided the major Inheritance Tax changes many had expected, several announcements will affect private clients, particularly those with trusts, pensions, property and businesses.

Here are the key changes and what you need to know.

Inheritance Tax and trusts

New rules will change how certain liabilities are treated when valuing assets held in trusts for Inheritance Tax (IHT) purposes. The aim is to prevent arrangements involving debt from being used to artificially reduce the taxable value of trust assets.

The changes apply to transfers of value and IHT charges arising on or after 28 October 2026. Trustees and anyone with existing trust arrangements should review their position.

Pensions and estate planning

Several pension-related changes were announced:

• Pension death benefits: From 28 October 2026, certain lump sum death benefits will no longer become taxable solely because they were paid more than two years after the scheme administrator became aware of the member’s death.
• Pension Tax Allowance: From April 2027, eligible people over State Pension age will receive an Income Tax reduction, subject to an income-based taper.
• Charitable gifts: Greater flexibility will help personal representatives qualify for the reduced 36% IHT rate where at least 10% of the relevant net estate is left to charity.
• Estate administration: From April 2027, prospective personal representatives will be able to arrange for certain pension-related IHT payments to be made directly to HMRC.

Importantly, from April 2027, most unused pension funds and pension death benefits will also be brought within an individual’s estate for IHT purposes. This is a significant change for those who have previously used pensions to pass wealth to future generations.

Property and savings income

From 6 April 2027, Income Tax rates on property and savings income will increase by two percentage points:

• Basic rate: 24% (previously 20%).
• Higher rate: 44% (previously 40%).
• Additional rate: 49% (previously 45%).

The increases will affect people receiving rental income or taxable savings interest, but will not apply to employment or pension income.

Those with substantial property or savings income may wish to review their financial arrangements ahead of the changes.

Cash ISAs

The annual ISA allowance will remain at £20,000. The government has decided not to proceed with its previously considered reduction to the cash ISA allowance, meaning individuals can continue to save up to £20,000 each tax year in ISAs.

Business Asset Disposal Relief

Business owners planning to sell or pass on their business should note that, from 6 April 2027, the lifetime limit for qualifying gains under Business Asset Disposal Relief will fall from £1 million to £500,000.

This could mean more of the proceeds from a business sale are subject to Capital Gains Tax. Anyone considering selling, retiring or planning business succession should review their arrangements and seek advice before making decisions.

Is it time to review your estate plan?

Although the Budget did not introduce major new IHT reforms, the forthcoming pension changes and frozen IHT allowances could have a significant impact on the value of estates and the amount passed on to beneficiaries.

Reviewing your will, trusts, pension nominations and lifetime gifting arrangements can help ensure your plans remain appropriate.

How Marlborough Law can help

The Autumn Budget highlights the importance of keeping financial and estate planning arrangements under regular review.

We can advise individuals, families, trustees and business owners on the changes and help you understand how they may affect your circumstances.

If you would like advice on your estate planning or the implications of the Budget, please get in touch with our team.

This article provides general information about the Autumn Budget announcements made on 28 October 2026. It is not legal, tax or financial advice. The impact of the changes will depend on individual circumstances and the relevant legislation.