Businesses, landlords and savers set to be impacted by Labour’s Autumn Budget are being urged to seek expert legal advice following the Chancellor’s announcement of sweeping tax hikes.

Chancellor Rachel Reeves has confirmed a raft of tax rises, worth around £26 billion by 2029, which are set to hit workers, the wealthy and small business owners hard.

The Chancellor has announced that the National Living Wage for over-21s will increase by 4.1% to £12.71 an hour, with the minimum wage for 18-20-year-olds increasing by 8.5% to £10.85 an hour. However, with Income Tax thresholds being frozen until 2031, hundreds of thousands of people would now be dragged into paying tax, or into higher tax brackets.

Tom Evans, a partner and tax specialist at Shropshire law firm mfg Solicitors, is warning people to get their estates and finances in order to prepare for the changes.

He said: “The Chancellor did not go ahead with Income Tax rises that had been threatened, but freezing the Income Tax threshold is effectively a ‘stealth tax’ and means that, while average earnings rise, people will pay a bigger proportion of their income in tax.

“It is also worrying for business owners who will have to shoulder the costs of complying with the new rules.”

In a blow for small company owners, Dividend Tax will rise by 2p from April 2026 - taking the basic rate to 10.75% and the higher rate to 35.75 – while the current 100% Capital Gains Tax (CGT) relief on the sale of a controlling interest in a company to an Employee Ownership Trust has been slashed to 50%.

Mr Evans also warned that landlords will be hit with higher tax rates for property income - a basic rate of 22%, higher rate of 42% and additional rate of 47% - from 2027/28, while an annual High Value Council Tax surcharge will be levied on properties in England valued at over £2 million from April 2028.

The Chancellor is ploughing ahead with reforms to Inheritance Tax, which will see the introduction of a 20% IHT on agricultural land and businesses worth more than £1m, putting many farming families at risk of facing unaffordable tax bills to inherit the family business.

Tom added: “The change means that when a married farmer dies, they no longer need to leave the £1m of agricultural or business assets directly to their beneficiaries (excluding their spouse) to use their Agricultural Property Relief (APR) or Business Property Relief (BPR). Instead, with appropriate planning, their spouse can inherit the assets and later use both allowances – £1m from their spouse and £1m of their own – when passing assets on to their beneficiaries. It is a welcome change, but a minor one which will only ease the impact on some families, so it is still vital for farmers to carry out necessary estate planning.”

He added: “After months of speculation and last-minute U-turns, Chancellor Rachel Reeves has delivered a Budget that takes taxes to an all-time high and will have an impact on businesses, workers, the wealthy and savers alike.

“It is understandable that the announcement has caused uncertainty for many people, which is why it is important to speak to tax experts who can guide people through the changes and allow them to prepare for the future.”

Readers can contact Tom Evans through This email address is being protected from spambots. You need JavaScript enabled to view it.

mfg Solicitors has seven offices across the region in Telford, Ludlow, Kidderminster, Bromsgrove, Birmingham, Worcester, and the Black Country.