Family Matters: Succession and Inheritance Tax planning in a changing landscape

Recent legislative changes, rising asset values and the continued freezing of tax allowances mean IHT is a key consideration for your family’s future.

As inheritance tax (IHT) receipts continue to rise year on year, and with the significant upcoming changes to the IHT treatment of businesses, land and pension assets, it’s natural to be concerned about how much of your wealth will be passed on to the next generation. Thankfully, there are still many options for those looking to manage their exposure to IHT.

Our experts hosted a session to outline what these changes mean in practice and the key steps you can take now to protect, grow and transfer your wealth.

Key takeaways

The IHT landscape is shifting rapidly

Upcoming reforms to Business Relief, Agricultural Property Relief and pension death benefit taxation mean more families are becoming exposed to Inheritance Tax, particularly against a backdrop of frozen allowances and rising asset values.

There are still a wide range of planning options available

With well-considered planning that balances your own financial security with your IHT objectives and the varying needs of your beneficiaries, Inheritance Tax is something that can still be managed. Tools such as utilising exemptions, structured gifting, trusts, companies, and insurance based solutions continue to represent components of effective IHT planning.

Business owners face new considerations

Upcoming changes to Business Relief mean business owners may see a significant shift in their exposure to IHT. Reviewing group structures, cash positions, the status of assets and long term ownership plans is now critical. Tools such as growth shares, minority discounts and succession focused planning can help families pass on business assets efficiently while retaining appropriate levels of control.

Pension treatment will change from 2027

Pension funds will become subject to IHT from April 2027, leading to a significant risk of double- and even triple-taxation. This change requires many to reassess how pensions fit in with their long-term financial planning.

Investment strategy should not be forgotten in IHT planning

There are a number of IHT-efficient investment options, and all of them have their place. However, you should never lose sight of the underlying investment and how its risk-return profile differs from more conventional investment strategies.