That’s why we’re launching this dedicated mini-series: to help you understand what’s changing, what your options are, and how you can take back control of your estate planning.
Over the next few weeks, we’ll break down key areas of IHT in a clear, practical way, giving you digestible guidance you can apply now and share with family, friends, or colleagues who may be facing similar concerns.
Why IHT is Becoming a “Mainstream” Issue
Even though the basic IHT threshold (the £325,000 Nil-Rate Band) hasn’t changed since 2009, asset values have not stood still. Combined with the Residence Nil-Rate Band (RNRB), some estates can pass on up to £500,000 per person tax-free, but this hasn’t kept pace with real-world wealth growth.
At the same time, major reforms are coming that will significantly affect families, business owners, and anyone with pension wealth.
The First Big Change: Business & Agricultural Relief Reforms Coming in April 2026
Historically, Agricultural Property Relief (APR) and Business Property Relief (BPR) have helped farms and family businesses pass through generations with little or no IHT. However, from 6 April 2026, these reliefs will be capped for the first time at £2.5 million meaning business es in excess of this would be subject to inheritance tax at a rate of 20%. This allowance can also be transferred between spouses or civil partners, meaning a couple could have an allowance of £5,000,000 between them
We’ll explore these changes in depth later in the series, including how business owners can prepare, how the new caps work, and what planning opportunities remain available.
The Second Big Change: Pensions Coming into the IHT Net from April 2027
For years, pensions have been one of the most efficient ways to pass on wealth. Most defined-contribution pension pots sat outside a person’s estate for IHT, meaning beneficiaries could receive them free of inheritance tax, even where significant sums were held.
That advantage is set to change.
From 6 April 2027, most unused pension funds and death benefits will become part of the taxable estate. This means that pension wealth will now be added to the total value of an estate when IHT is calculated. This shift will bring defined-contribution pensions squarely into the same IHT regime as other assets. This could create challenges, particularly for pension plans holding illiquid assets such as commercial property, where beneficiaries may struggle to raise the cash to pay IHT.
This is one of the most significant changes in pension tax treatment for over a decade, and we’ll dedicate a full article to helping you understand what it means for you, including how to plan ahead.
Why We’re Sharing This With You
Our aim is simple: To help you feel confident, informed, and in control when it comes to your estate planning. If these changes effect you don’t worry, your adviser will be discussing this with you as part of your regular reviews.
However, we also know that many of our clients have family members, friends, or colleagues who are facing similar challenges, especially with these rule changes approaching. Each article in this series is designed to be easy to forward on, helping those you care about, get ahead of the changes too.
A Complimentary IHT Overview for Anyone You Refer
Whilst your adviser will be going into depth with how these changes impact you specifically, if you know anyone that could benefit from the information in these articles please feel free to share them.
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