By Andrew Langbridge, Private Client Solicitor and Samantha Pettersen, Senior Associate
Chancellor Rachel Reeves delivered her second budget to parliament today. After months of speculation, we finally have the details and it seems inheritance tax has been given a reprieve. The following is a summary of the main points announced.
Infected blood scandal compensation
Following campaigns by professional bodies including the Association of Lifetime Lawyers and the Society of Trust and Estate Practitioners, the Chancellor announced that compensation payments to victims of the infected blood scandal will be exempt from inheritance tax.
Agriculture and Business property relief
The Chancellor also confirmed that the £1,000,000 allowance of agricultural and business property relief announced in last year’s budget will be transferable between spouses and civil partners in much the same way as the standard and residence nil rate bands.
Lifetime Gifts, Estates and Trusts
Other significant reforms mooted in the lead-up to today’s budget, including imposing a limit on lifetime gifts or increasing the length of time for which lifetime gifts are included in a person’s estate from seven years to ten years, failed to materialise.That being said, estates and trusts are unlikely to be immune to the effects of today’s budget. In particular, estates and trusts are likely to be subject to the 2% increases in the basic, higher and additional rates that apply to dividend, property and savings income.
How can Goughs help?
At Goughs, we can help you make the most of this inheritance tax reprieve. Our team of trusted advisors can help you reduce your exposure by ensuring you claim all available allowances, exemptions and reliefs. If you would like more information, please contact us today
Post-Budget Briefing
Why not join us at our exclusive ‘Post Budget Briefing?’
- To be hosted alongside Fidelius Financial Advisors and Pearson May Accountants
- Wednesday 7th January 2026, from 6pm
- At the beautiful Hartham Park Estate, Corsham
- BOOK NOW