• Pension Reform from April 2027: Most unspent pensions will be taxed as part of your estate — currently they are excluded.

• Frozen Thresholds: Nil-rate bands remain frozen until 2031, meaning more estates will exceed the limits.

• Business Relief Reform (April 2026): Individuals and trusts will only receive 100% relief on the first £1 million of qualifying business and agricultural assets. Above this, relief drops to 50%, resulting in a 20% IHT charge.

• Unlisted Shares: Assets such as AIM shares will only qualify for 50% relief, regardless of value.

You may be impacted if your estate includes:

• Individuals or couples with a total estate of £500,000 for a single person or £1 million for a couple, and those with estates over £2 million where the Residence Nil Rate Band begins to taper, may be affected. An estate can include property, savings, investments and  pensions as well as all your possessions.

• Substantial pension assets — could be exposed to both IHT and Income Tax from 2027

• Business assets or unlisted shares — subject to reduced relief from 2026

1. Use Your Gifting Allowance
• Gift up to £3,000 per year tax-free (or £6,000 as a couple)
• Carry forward unused allowance for one year

2. Make Larger Gifts
• Gifts above the allowance may be taxed if you die within seven years

3. Gift from Surplus Income
• Regular gifts from income are immediately exempt
• Must not affect your standard of living

4. Leave a Legacy to Charity
• Charitable gifts are IHT-exempt
• Leave 10% or more of your net estate to charity to reduce IHT rate to 36%

5. Use Discretionary Trusts*
• Trusts can remove assets from your estate after seven years
• Trustees manage distribution, offering control and protection

6. Take Out a Whole of Life Insurance Policy
• Policies written in trust can cover your IHT bill
• Payouts are outside your estate and available immediately

Seek Advice – whilst these are all potential actions to help reduce your IHT liabilities, IHT planning is complex and needs structure. Seeking professional advice will ensure you maximise the opportunities in the most effective way.

Currently, most pension funds are outside the estate for IHT. From April 2027, this benefit is will end, meaning:
• Most pension funds could face IHT on death
• Beneficiaries may also pay Income Tax when drawing funds

Planning ahead may involve:
• Reviewing beneficiary nominations and “expression of wishes”
• Modelling different scenarios of your retirement plans.
• Considering gifting or protection solutions while flexibility remains

From April 2026, Business Relief (BR) and Agricultural Property Relief (APR) will be reformed:
• £1 million allowance per individual at 100% relief
• Value above this will attract only 50% relief

Early review of ownership structures, valuations, and succession plans is essential to avoid future tax shocks.

Yes. When used correctly, trusts remain one of the most effective tools to control and protect family wealth. They offer a balance between:
• Access
• Control
• Protection
• IHT efficiency

Each trust type has its own tax and reporting requirements, so qualified advice is essential.

Many families prefer to retain control of capital. In this case, a whole-of-life insurance policy in trust* can:
• Create liquidity to pay future IHT
• Avoid reducing your estate during your lifetime
• Be funded using surplus income, keeping it outside the estate

Not at all. While residency can affect your tax position, there are many UK-based strategies to reduce or eliminate IHT exposure, including:

• Gifting
• Trust structures*
• Retirement planning
• Protection-based solutions

Over the next 12–18 months, consider:
• Reviewing your Will, trusts*, and pension nominations
• Obtaining an up-to-date valuation of your estate
• Using gifting allowances strategically
• Assessing business and agricultural relief eligibility
• Exploring protection options for residual IHT exposure

Starting early allows you to take advantage of today’s rules and allowances.

Will writing involves the referral to a service that is separate and distinct to those offered by St. James's Place. Wills are not regulated by the Financial Conduct Authority.