First things first, the personal allowances that are currently in place* will remain the same until 2030.

However, the Government has announced 3 major changes to the current Inheritance Tax regime:

From April 2027, inherited pensions will now be included within assets considered for Inheritance Tax. The current regime allows for nominated pensions to fall outside of the estate for Inheritance Tax purposes. This previously operated as an effective estate planning measure for many, increasing your estate’s inheritance tax liability.

The first £1m of combined business** and agricultural*** assets will continue to attract no inheritance tax liability. For assets over this amount, inheritance tax will apply with a 50% relief and at an effective rate of 20%. This means that combined assets over £1,000,000.00 will now attract an inheritance liability rather than being eligible for 100% relief.

The relief available on shares quoted on the Alternative Investment Market has been halved.

In light of the these upcoming changes, we recommend you seek advice for Inheritance Tax planning.  Our clients are also advised to review their Wills every 3-5 years or in the event of any significant life events or changes in the law.

We would be more than happy to carry out a free review of your Will in light of the Government’s new budget. Please contact the team on 0800 614 722 today.

*Every individual has a Nil Rate Band of £325,000 with an additional £175,000 being available if property is being passed to direct descendants of the deceased.

** https://www.gov.uk/business-relief-inheritance-tax  

*** https://www.gov.uk/guidance/agricultural-relief-on-inheritance-tax