What the Autumn 2025 Budget means for probate and estate administration

Last year’s Autumn Statement marked a major shift in tax policy. It introduced changes to Inheritance Tax (IHT), pensions, business reliefs, and non-domiciled rules. These were described by Chancellor Rachel Reeves as necessary steps to “restore stability of public finances and rebuild public services.”

Twelve months on, the Autumn 2025 Budget builds on the foundations laid in 2024. While fewer headline tax changes were announced this year, many of last year’s reforms are now moving closer to implementation. This means individuals and estate practitioners may soon start to see real-world effects.

Below is a summary of the latest updates and what they could mean for estate planning, probate and estate administration.

A reminder: Key changes announced in Autumn 2024

Last year, the Chancellor introduced a four-point plan for Inheritance Tax (IHT). This included:

• Freezing the Nil-Rate Band at £325,000 until April 2030
• Bringing unused pension funds into the IHT net from April 2027
• Reforming Agricultural and Business Property Relief from April 2026
• Reducing Alternative Investment Market (AIM) IHT relief to an effective 20% rate from April 2026

She also introduced:

• A new tax regime for non-domiciled individuals
• Changes to State Pension rates
• Increased employer National Insurance
• A 6.7% rise in the National Living Wage

These changes set the direction for long-term reform, with a clear message that “change must be felt”, as stated by the Chancellor in 2024.

Many of these measures are still active and progressing, with several coming into force over the next one to two years.

What’s new in the Autumn 2025 Budget?

1. Income Tax and National Insurance

The Government has confirmed that Income Tax and National Insurance thresholds will remain frozen until 2028–29. This decision builds on the commitment made in 2024 and is expected to increase tax receipts through “fiscal drag”.

For many families, this means higher overall tax bills even without tax rate rises. For estate practitioners, frozen thresholds may affect disposable income, savings behaviour, and the size of future estates. In her 2025 speech, the Chancellor reiterated:

We changed our fiscal rules and raised public investment to its highest level in forty years.

2. Savings and investment taxation

There are several changes that may affect how individuals save and invest during their lifetime, including:

• A reduction in the cash ISA allowance for under-65s from 2027
• Increased tax rates for dividend income and savings interest from 2026/27

These adjustments will not directly affect estate administration today, but they may influence the structure of future estates.

 3. No new changes to Inheritance Tax

The 2025 Statement did not introduce further reforms to IHT thresholds or rates. Instead, the focus remains on implementing the significant changes announced in 2024.

This includes:

• Pensions entering the IHT net from 2027
• Reduced Business Property and Agricultural Relief from 2026
• Lower IHT relief for AIM shares from 2026

With the above changes, property values continuing to rise, and thresholds remaining frozen, an increasing number of estates are expected to become taxable in the coming years.

4. Business and economic measures

Although not directly related to probate, the Budget confirmed:

• Corporation Tax remains at 25%
• Employer National Insurance stays at 15%
• Public investment will increase in areas such as healthcare, transport, and housing

These measures may affect the value of business assets that appear in estates, particularly family-owned companies and shareholdings.

5. Cost of living and employment

The Government confirmed further rises to the National Living Wage and ongoing protection of maternity, paternity, and employment rights. These changes aim to support working households but may also impact the disposable income that individuals have available for lifetime planning.

What this means for probate and estate planning

Many of the most important changes for estates are still the measures announced last year. As they move closer to implementation, people may start reviewing their assets, pension arrangements, and gifting strategies.

For Executors and Administrators

• Estates involving pensions will become more complex from 2027
• Reduced relief for AIM shares or business assets will cause higher IHT bills
• Frozen thresholds could increase the number of taxable estates
• More estates may require detailed valuation and specialist support

For consumers planning ahead

• Reviewing pensions and death benefit nominations will be important
• Savings and investment decisions may need revisiting
• Lifetime gifting could become more relevant in future planning

For partners working with families

Funeral Directors, Will Writers, Financial Advisers, and Solicitors may receive more questions about IHT exposure, pension changes, and long-term estate planning. Clear and accessible information will be essential as these changes roll out.

Conclusion

The Autumn 2025 Budget does not introduce as many headline changes as last year, but it reinforces the direction set out in the 2024 Statement. With major IHT and pension reforms still scheduled for 2026 and 2027, the coming years may bring greater complexity for families dealing with estates.

At Kings Court Trust, we specialise in probate and estate administration, supporting families through every stage of the process. As rules evolve, we are here to provide clear guidance and practical support for Executors, beneficiaries, and our valued partners.