In October, Chancellor Rachel Reeves announced that, starting April 2027, inherited pensions will be subject to inheritance tax (IHT).
From April 2026, farmland owners will be eligible for 100% agricultural property relief on up to £1 million in value, with amounts above this threshold qualifying for 50% relief. Additionally, IHT thresholds are frozen until 2030.
According to supplementary Budget tables, the Office for Budget Responsibility projects that the percentage of deaths subject to IHT will increase from 5.1% in 2022/23 to 9.5% by 2030. This represents a near-doubling, with affected deaths expected to rise from 35,000 to 66,600 over this period.
Marc Acheson, global wealth specialist at Utmost Wealth Solutions, noted, “Inheritance tax is often considered one of the UK’s most unpopular taxes, yet it can be seen as somewhat ‘voluntary’ since there are strategies available to help minimize its impact.
“In the near term, we anticipate a surge in demand from individuals seeking to reconnect with advisers and revisit their financial plans.”
