Key Takeaways from the Autumn 2024 Budget – Implications for Property, Wealth, and Families

Introduction: A New Direction in Economic Policy 

The Autumn 2024 Budget, presented by Chancellor Rachel Reeves on 30 October, marks a pivotal shift in the UK’s economic landscape. As the first woman to deliver a budget and the first Labour budget in over a decade, Reeves introduced policies aimed at rebalancing tax burdens and addressing pressing economic challenges. This budget is expected to have broad implications across property ownership, tax planning, pensions, and family wealth management. 

With significant adjustments to tax reliefs, property taxes, and inheritance provisions, individuals and families may need to reassess their financial and legal strategies. At Anthony Gold, our Private Client Services team is here to guide clients through these changes, helping you understand how the adjustments could impact your property, estate, and wealth planning needs. 

Property and Conveyancing Implications 

For property buyers, sellers, and investors, several key budget changes may directly impact transaction costs and property-related taxes. 

One major change is the increase in the Stamp Duty Land Tax (SDLT) surcharge on second homes, buy-to-let properties and companies purchasing residential property, which rises from 3% to 5% effective 31 October 2024. This change affects individuals purchasing additional properties for investment or personal use, increasing the cost of buy-to-let and second-home ownership. For transactions already underway, it’s important to consult with conveyancing professionals to recalculate tax exposure. Early indications suggest that exchanged transactions may be exempt from this increase unless contract terms are modified after today. 

The Chancellor did not announce changes to the current SDLT threshold, but the planned reduction from £250,000 to £125,000 is expected to go forward in 2025. Clients planning property purchases may wish to complete transactions before this new threshold takes effect to maximise SDLT savings.  

Business rates relief has been extended for retail and hospitality sectors, though many businesses could face longer-term rate increases. The government have indicated future reforms of business rates are under consideration. 

Upcoming changes to Agricultural Property Relief for inheritance tax may also make farmland a less attractive investment option due to reduced tax benefits. For property investors, this will be a critical area to consider, particularly if they have structured their portfolios around agricultural investments. 

Wills, Trusts, and Estates: Key Changes to Inheritance and Capital Gains Tax 

For clients engaged in estate planning and wealth management, this budget introduced significant changes in inheritance tax (IHT) and capital gains tax (CGT) that may affect legacy and asset planning strategies. 

The Chancellor extended the IHT threshold freeze until 2030, which effectively increases the tax burden as asset values rise with inflation. Additionally, unspent pension pots will become subject to IHT from 2027, impacting those planning to leave pension wealth to beneficiaries.  

For clients inheriting farmland or business assets, exemptions will be reduced from 2026, limiting the tax relief available on these assets. 

The budget introduced an increase in CGT rates, with basic rates rising from 10% to 18% and higher rates from 20% to 24%. These changes came into effect immediately. Notably, CGT rates on residential property sales remain unchanged, preserving the current tax structure for property investors and homeowners. 

With these adjustments to IHT and CGT, individuals and families planning to transfer wealth or crystallise gains may need to reassess their strategies. Consulting with estate planning professionals can help mitigate potential tax liabilities, especially for those who are considering selling or passing assets down a generation.   

Family Law Implications 

In addition to the above, which may impact financial arrangements on divorce and separation, the budget also brings noteworthy changes for families, particularly regarding educational costs and tax status. 

One notable change is the previously announced introduction of VAT on private school fees from January 2025. This will increase the cost of private education, potentially affecting families with court-ordered arrangements to cover school fees. Where these arrangements are no longer financially feasible, families may need to consider court order modifications. If a consensus cannot be reached on schooling changes, such as transferring a child to state school, a specific issue order may be required to resolve the disagreement. 

Another key shift is the elimination of non-dom tax status, which has implications for international families and high-net-worth individuals living in the UK. Non-domiciled individuals previously benefitted from significant tax advantages, allowing them to keep foreign income and gains outside UK tax liability. With the removal of non-dom status, international families may face increased tax burdens, particularly those with substantial foreign-held assets or income. This change could necessitate a reassessment of asset structures, particularly in divorce cases where financial settlements and asset divisions now carry different tax considerations. 

For couples going through divorce, the loss of the non-dom regime may affect the overall division of assets, including property, business interests, and international holdings. Increased tax liabilities on overseas assets can alter the value of settlements, and high-net-worth families may need to reassess prenuptial agreements or consider post-nuptial agreements to address these new tax obligations. The impact on international families can be substantial, especially if foreign earnings or assets are central to financial settlements. 

For couples still together, the loss of the non-dom regime may also spark conversations about a potential relocation to a country with a more favourable tax regime, and that could cause issues between families where one person wants to relocate, and the other doesn’t.  This could have a wide-ranging impact as to which country would be in the best interests of any children, and in the event of a separation, which jurisdiction is the appropriate forum for dealing with any divorce and financial or other arrangements, particularly if the separation takes place following a relocation as a family.   

Income Tax and Other Considerations 

The budget includes some additional income tax changes that may affect financial planning. Starting in 2028, income tax thresholds will align with inflation, which may reduce the tax burden on earners over time. This change presents an opportunity for clients to review their financial strategies in anticipation of adjustments to tax liabilities. 

In areas such as child benefit and other income support measures, there were no immediate changes, providing stability for individuals relying on these benefits. However, with other tax increases in place, families should consider how the overall financial picture may shift and plan accordingly. 

Anthony Gold’s Private Client Services  

With substantial changes across property, tax, and family wealth planning, being proactive is essential. Our Private Client Services team is here to support you, offering tailored advice to help you navigate these updates effectively. 

For those affected by SDLT increases, our conveyancing team can assist with recalculating costs and exploring timing strategies for purchases. In estate planning, our team can provide guidance on managing IHT and CGT changes, especially in light of new rules on unspent pensions, business assets, and farmland. 

Our family law team also provides specialised support for international families and those impacted by VAT on school fees and non-dom status changes. Whether it’s wealth structuring, educational planning, or adjustments to court-ordered arrangements, we’re here to help you respond confidently to the budget’s adjustments. 

Contact us today at 020 7940 4060 or email us at mail@anthonygold.co.uk to discuss how these changes may impact your financial and legal plans.