News
Autumn Budget 2025: Your Questions Answered
08 Dec 2025
Following our recent Budget seminars across Shropshire, Cheshire, and Wales, we received some brilliant questions from clients. Our Tax Partner, James Clark, has provided answers to the most common queries we heard.
If you asked a question at one of our events, you’ll hopefully find your answer below. And if you have further questions, we’re always happy to chat.
“Do you know how the values are going to be calculated for the Mansion Tax? Is there going to be a new VOA valuation for certain bands of Council Tax?”
One of the headline announcements was the new high value residential property council tax surcharge (which many are calling the “mansion tax”). HMRC will apply this to properties in England worth £2 million or more.
So how will they determine which properties fall into this bracket?
The answer: The Valuation Office Agency (VOA) will be undertaking a valuation exercise in 2026 to establish which properties meet the threshold.
If you own high-value residential property, it’s worth keeping an eye on this development over the coming year. We’ll share more detail once the VOA process is confirmed.
“If I move from partnership to limited company with my property portfolio that I personally manage, would I get incorporation relief?”
This is a great question, and one we’re hearing more often as landlords consider their structure options.
The answer: Potentially – but it depends on whether your levels of activity are sufficient to amount to a business.
For incorporation relief to apply, your property activities need to be more than passive investment. If you’re actively managing properties, handling maintenance, dealing with tenants day-to-day, you may have a stronger case. But if it’s a more hands-off arrangement, incorporation relief might not be available.
We’d recommend chatting with an adviser to review your specific circumstances before making any structural changes.
“What’s the definition of a mansion?”
The answer: HMRC will apply the new high value residential property council tax surcharge to properties in England worth £2 million or more.
So if you’re wondering whether your property qualifies – that’s the threshold to keep in mind.
“Other than no change for the over 65s, is the change to the maximum cash that can be held in an ISA retrospective?”
There was some confusion around the ISA changes at our events, so we’re glad this question came up.
The answer: No, the changes are not retrospective. They’ll apply to subscriptions from April 2027 onwards.
So there’s no need to worry about anything you’ve already contributed. Your existing ISA arrangements are unaffected.
“Can you recap the changes to capital allowances and the First Year Allowance at 40%? How is this different to what we have already?”
We know capital allowances can get a bit technical, so here’s the key point about the new 40% First Year Allowance (FYA).
The answer: This new relief is specifically aimed at businesses that acquire capital assets to lease out.
It’s different from the existing structures many businesses are used to. So if you’re in the business of leasing equipment, machinery, or other qualifying assets, this could be a valuable planning opportunity worth exploring.
“What changes to Business Rates for Retail, Hospitality and Leisure did the Budget announce?”
This isn’t an area we typically advise on directly, but we know it matters to many businesses in our region.
The answer: The government has published detailed guidance on the changes.
You can find the full breakdown here: Budget 2025: Retail, Hospitality and Leisure Factsheet
If business rates are a concern for your operation, it’s worth reviewing that document or speaking with a specialist in this area.
“Do both spouses have to be owners of a business to benefit from the transferable BPR allowance? For example, if just the husband owns the business?”
The answer: The detail on the transferrable allowance hasn’t been fully published yet, but the expected answer is no – both spouses don’t need to be owners.
However, we’ll need to wait for the final guidance to confirm exactly how this will work in practice. This is one to watch, particularly for family businesses where ownership sits with one spouse.
“Regarding the gifting of income from pension income, does the person receiving the gift have to pay income tax?”
The answer: No, the recipient won’t be liable for income tax on gifted pension income.
This can be a helpful way to support family members while managing your own estate planning.
“How easy is it to transfer Buy-to-Let properties into a limited company if they have mortgages secured against them? What does the process look like?”
For landlords with mortgaged buy-to-let properties, the incorporation question often hinges on what happens with existing finance.
The answer: You’ll need to liaise with your current lender(s). The incorporation will result in a change in the beneficial ownership of the properties, which means most lenders will need to consent to the arrangement.
Some lenders are more flexible than others, and the process can vary depending on your circumstances. It’s not necessarily complicated, but it does require careful coordination – and ideally, professional advice to navigate the tax and legal implications properly.
What’s Next?
These were just some of the questions that came up during our sessions, and they reflect the kinds of practical concerns many business owners and individuals are grappling with following the Budget.
If you have your own questions about how the Autumn Budget affects you, your business, or your family’s finances, we’re here to help. Get in touch with our Tax Team for a one-to-one conversation tailored to your situation.
