Race on to protect wealth from inheritance tax changes
Families across the UK now have clarity: the 26 November Budget confirmed that there will be no change or relaxation to the major inheritance tax (IHT) reforms scheduled for April 2026 (and April 2027 for unspent pension pots). This certainty means the countdown has truly begun - and early planning is critical to safeguard wealth from IHT liabilities that could claim up to 40% of an estate.
Why the urgency?
The upcoming changes are expected to have far-reaching consequences for individuals, families, and business owners. Rising property values, accumulated savings, investments, and pension pots mean that hundreds of thousands of estates now exceed the current IHT threshold of £650,000 (including the transferable nil-rate band for couples). Without proactive steps, families could lose £400 for every £1,000 of wealth to the Treasury.
Who will be most affected?
- Business owners and farmers transferring shares or assets
- Individuals with large pension savings
- Families with property-rich estates
In most cases, IHT liabilities are set to increase, making early action essential.
What’s driving concern?
We’ve seen a surge in enquiries from families frustrated that wealth - already taxed during their lifetime - is set for an increased tax hit upon death. Many are now racing to complete valuations and transfers before the next tax year. Delays in conveyancing and legal processes could derail plans, especially for complex transactions like business share transfers or trust arrangements.
It is clear to see that the limited timeframe to implement and take advantage of potentially significant planning opportunities is a narrowing window, with a deadline of 6 April 2026. With advice and sensible planning strategies, IHT liabilities can be understood and managed appropriately, with significant benefits to the family. Planning and advice will continue to be important post April 2026, with a tax strategy becoming vitally important to protect family wealth.
Key risks to consider
- HMRC compliance checks and investigations are on the rise
- Changing estate plans is complex and time-sensitive
- Advisers and conveyancers will be under pressure so timing is key
What’s changing under the new regime?
Draft legislation published in July 2025 outlines:
- Caps on certain IHT reliefs, which have historically helped with the succession of family wealth
- New rules for trusts
- Reduced relief on AIM-listed shares
- Changes to pension treatment
- Transitional provisions with practical implications
We’re here to help
With the reform going ahead as planned, the window for action is clear.
For families and business owners, now is the time to:
- Review your estate and tax position
- Explore trust and gifting strategies
- Assess pension and business succession plans
- Start conversations with a specialist adviser
For support on your specific circumstances, get in touch with one of our expert personal tax advisers via the form below.
