Estate & IHT Planning
What To Expect In The November Budget For Inheritance Tax And Estate Planning
The Autumn Budget will be a key moment for the current government’s tax policy. The Chancellor is facing significant challenges in trying meet spending pressures which would likely require future tax hikes. Sweeping reforms often appear with little warning, and inheritance tax (IHT) is under particular scrutiny.
With a growing number of estates being pulled into IHT due to frozen thresholds and rising asset values, this November’s Budget could see the rules changing again. Pensions are due to be included in estates from April 2027 for IHT calculation purposes, so anyone with significant assets, pensions, or business property should be thinking ahead now rather than waiting for the announcements to land.
Recent Changes Are Already In Motion
Inheritance tax is already applying to many more families, even without new rules.
The tax-free allowance has been frozen at £325,000 (plus an extra £175,000 for homeowners if it goes to children or grandchildren). As property values rise, more estates are creeping over that line and paying 40% tax on the excess.
Business and agricultural property reliefs are also being cut back. From April 2026, only the first £1 million of qualifying assets will be free of IHT; anything above that will get just 50% relief, creating big bills for business and landowners.
And from April 2027, pensions will count as part of your estate for IHT, meaning families who thought they were safe from the tax could be pulled in for the first time.
Possible Announcements In November
Nothing is confirmed yet, but several changes are being discussed, and any could reshape how families pass on wealth.
· The seven-year rule on gifts might be altered, meaning gifts may need to be made earlier to escape IHT.
· Thresholds could stay frozen or fall, pulling even more estates into the tax net.
· Trust rules may be tightened or simplified, which could affect how family wealth is protected.
· There’s also speculation around aligning capital gains tax and IHT on death, removing the current uplift that lets heirs inherit assets at their market value tax-free.
If announced, these changes could take effect very quickly, leaving little time to react.
What To Do Now And Why To Get Advice
Acting early can stop sudden rule changes from catching you out. The key steps are:
- Reviewing wills and powers of attorney to make sure they reflect your current wishes and tax position.
- Getting up-to-date valuations on your main assets to see where you stand.
- Assessing your pension position and estimating the IHT liability from 2027.
- Considering gifts now to start the seven-year clock under current rules.
- Reviewing business or agricultural assets before the £1 million relief cap takes effect.
- Checking that any trusts are still appropriate and tax-efficient.
It’s far easier to do this with a professional adviser. Estate planning spans tax, law, pensions and investments, and small missteps can trigger big, unexpected bills.
If you choose the right adviser, they can build a strategy that fits your circumstances, coordinates all parts of your estate, and adapts quickly if the rules change.
Choosing The Right Adviser
Estate and IHT planning is complex, and not every adviser has the experience to handle it well, so choosing the right one matters.
It’s essential to look for someone who takes a joined-up approach, bringing together financial planning, tax considerations, and succession goals rather than focusing narrowly on one element. Where applicable, they should be willing to work alongside your solicitor and accountant to keep everything aligned.
Clarity is key too. A good adviser will be open about their fees, explain your options clearly, and make sure you fully understand any recommendations before you act on them.