Ahead of the Autumn Budget

As we look ahead to the Autumn Budget towards the end of October, we asked Gareth Greenwood, a Director at J H Greenwood & Company in Berwick-upon-Tweed, to share some thoughts and advice, particularly in relation to how this might impact on property in the months ahead.

Should I be trying to complete my sale before the Budget, or is it too soon to be concerned?

Like any budget, at this stage we do not know what changes will be included so it is difficult, indeed impossible, to be driven by any potential tax changes. This is, however, the first Budget under a new Prime Minister and Chancellor, and despite speculation as to what will be included at this stage, we do not know.

What are the most likely property-related tax changes being discussed ahead of the Budget, and who could be affected?

There has been speculation of an increase to the rate of Capital Gains Tax (CGT) leading up to this Budget. The rate of CGT increased in the Autumn Budget in 2024 but this did not increase as much as some commenters had perhaps thought. This certainly leaves room for a potential further increase in a few weeks’ time. Capital Gains Tax is a tax to be considered when selling a second property that individuals own in their own name, so this could have an impact should CGT rates be increased in the Budget.

If I am selling a second home, rental property or land, should I be thinking differently about the timing of a sale?

We know the rates of Capital Gains Tax should an individual sell any of these assets as of now. Of course, we cannot say for certain if a CGT rate change will happen but, if so, the timing of when any rate changes are introduced could have an impact based upon a date of sale. In 2024, we saw the CGT rate increase as of midnight on the day of the Budget, so any transactions had to be completed by midnight the day before the Budget to obtain the previously lower rate. Timing became key then.

If you are committed to selling a second property it would be advisable to complete this, so the tax is payable at the current rate that you know, as changes to taxation rates are seldom made retrospectively.

Could any changes to Capital Gains Tax, Inheritance Tax, or other reliefs affect homeowners and property investors?

As always this all depends upon individual circumstances and what these changes are, if any. I would always advise in any circumstance that affairs are reviewed on a periodic basis. No two people are the same and having advice tailored to your own circumstances is a must. If individuals are feeling that they may be impacted by changes in the Budget, they should seek their own professional advice.

What should landlords and holiday let owners be watching out for over the coming months?

They always need to be looking out for factors that directly impact them. Changes in legislation affecting furnished holiday lets occurred in April 2025 and this has had an impact on owners of this type of property.

Could the Budget have any impact on buyers, including first-time buyers, second-home purchasers or buy-to-let investors?

It certainly could, as could any future Budget.

What tax issues should rural landowners, farmers and estate owners be paying attention to this year?

Following considerable changes, as a result of the 2024 Budget, in relation to Agricultural Property relief/Business Property relief for Inheritance Tax, many rural landowners, farmers and estate owners will be hoping that these type of matters are left alone for some time going forward.

However, according to some pre-Budget speculation, some may be hoping for further improvement on the announcements of two years ago. Since the initial announcement, the limits for Agricultural Property relief/Business Property relief have been increased from £1,000,000 to £2,500,000, and some may be hoping for a further increase in the Budget.

Are there any potential changes that could affect succession planning and the transfer of family farms, land or rural businesses to the next generation?

We are not in a position to predict anything in advance, and I do feel that any previous changes have led to a lot of discussion, and changes, on succession planning related to family farms and rural businesses. Hopefully, these discussions will mean that the issues will continue to be reviewed going forward, alongside the legislation in place at the time.

If someone owns property, land or a rural business and is considering making a move, what would your key piece of advice be right now?

Always review your affairs alongside your wishes and current legislation. Tax is always a factor when having to make decisions, but it can only be considered alongside your own wishes.

For more detailed information, contact J H Greenwood & Company on 01289 302463 or email to [email protected]