Rising Interest in IHT Planning Among Investors
A survey of UK financial advisers and wealth managers by the investment manager found that 43% of enquiries are primarily from new clients, while 17% come from existing clients, and 39% report a mix of both.
Downing noted that interest in inheritance tax (IHT) planning was already increasing before the Autumn Budget in October. Over the past 12 months, 84% of advisers reported a rise in enquiries, with 24% seeing a significant surge.
In the Autumn Budget, the IHT threshold was frozen at £325,000—plus an additional £175,000 if a home is part of the estate—until 2030. Pensions were also included as part of an estate, pending further consultation.
Since the Budget, 94% of advisers and wealth managers have reported an uptick in client enquiries about IHT planning, with nearly a third (32%) experiencing a sharp rise. Looking ahead, 91% expect IHT-related enquiries to increase over the next 12 months, with almost half (46%) anticipating a substantial rise.
The Chancellor also announced changes to the tax relief available on business relief-qualifying assets. Currently, all such assets receive 100% IHT relief. However, from April 2026, unlisted business relief assets and agricultural relief assets will have a £1 million allowance, after which IHT relief will drop to 50% (resulting in an effective IHT rate of 20%). AIM-listed shares will not benefit from this £1 million allowance.
