Last week’s Autumn Budget, the second for Chancellor of the Exchequer Rachel Reeves, featured tax rises of £26 billion and are being used to finance additional spending and provide more fiscal headroom of almost £22 billion, up from £9.9 billion after last year’s Budget. You can read the Institute’s initial reaction to the Budget here, see coverage of our comments across the media later in this newsletter, and visit our UK Budget 2025 page for useful links, all UK Autumn Budget 2025 news stories and useful guidance. Last week a Special Budget Newsletter issued to members on the day covering our reaction and key announcements. In depth coverage of the 2025 UK Autumn Budget features later in this newsletter and in next Monday’s edition of Chartered Accountants Tax News. The Institute will be discussing the Budget in the coming weeks with HMRC and local Government.
Last Wednesday the Chancellor confirmed that the April 2026 changes to agricultural property relief and business property relief for inheritance tax are proceeding; the only mitigation announced is that the £1 million allowance will be transferable between spouses and civil partners. Whilst this is welcome and was amongst a range of recommendations made by the Institute in previous submissions to Government on this issue, it does not go far enough to protect genuine farming activity and older farmers, particularly in Northern Ireland. The Institute continues to call for a special derogation from these changes for the region given the importance of our agricultural and family owned business sectors.
Our Budget 2025 analysis this week and next is based on the publications of HMRC and HM Treasury. The Budget 2025 Overview of Tax Legislation and Rates has also been published and HMRC has sent a detailed update by email.
The Chancellor’s Budget Resolutions were subsequently introduced to Parliament on the afternoon of the Budget. These are expected to be followed later this week with the publication of the draft Finance Bill. A date is yet to be set for first reading of this Bill in the House of Commons, which will be known as Finance No. 2 Bill. The Treasury Select Committee has also announced a series of evidence sessions to scrutinise the Budget.
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