Wealth Managers See Surge in Demand for Inheritance Tax Advice
Date: Wednesday, September 24, 2025
By [Author Name]
Caption: This investment follows the ministry’s launch of a procurement process for a cross-government data platform, designed to enhance transparency.
Rising Concerns Over Inheritance Tax Reforms
Wealth management firms are witnessing an unprecedented spike in demand for estate planning services as high-net-worth individuals scramble to prepare for anticipated changes to inheritance tax regulations. With the UK Chancellor Rachel Reeves poised to address a staggering £30 billion fiscal deficit in the upcoming Budget, many wealthy clients are proactively seeking advice to navigate potential tax implications.
Surge in Demand for Estate Planning
Rathbones, a prominent wealth manager, reported a sharp uptick in inquiries related to inheritance planning, particularly among clients with £5 million or more in investable assets. According to their recent findings, 43% of these clients are looking for estate planning advice in the coming year. This renewed interest stems mainly from leaks suggesting that the Chancellor may be considering new measures targeting the significant savings and pension pots held by UK citizens.
Potential Policy Changes: What to Expect
The Treasury’s rumored examination into capping the amount taxpayers can gift without incurring inheritance tax is raising alarms. Currently, gifts made more than seven years before an individual’s death are exempt from inheritance tax, while those made within three to seven years may incur a sliding scale tax known as ‘taper relief.’
New Tax Measures on Pensions
Adding to the concerns, ministers are expected to extend inheritance tax to pensions starting in April 2027. This means unused pension pots and death benefits—payments made to beneficiaries after the account holder’s death—will soon be subject to standard inheritance tax rates.
Expert Insights on Financial Planning
Simon Bashorun, head of advice at Rathbones Private Office, highlighted the uncertainty surrounding these changes, describing the current climate as “a prolonged period of speculation that is a bane to financial planning.” He stressed that clients are eager to act quickly on potential changes, especially regarding inheritance tax and gifting strategies.
Historical Context: Past Reforms and Protests
Notably, any modifications in inheritance tax will be scrutinized closely, especially given the backlash from previous proposals known as the ‘family farm tax.’ This contentious reform aimed to eliminate certain tax reliefs for farmland and family-owned businesses, leading to widespread protests across the country.
Clients Reassess Long-Term Financial Strategies
With mounting speculation surrounding these impending policy changes, clients with substantial pension portfolios are reassessing their financial strategies. Many are inquiring whether they should take preemptive actions before the Autumn Budget, which remains a point of concern for effective estate planning.
Conclusion: Prepare for Uncertainty
As the UK government gears up for the upcoming Budget, high-net-worth individuals must stay informed and consider the long-term implications of potential tax reforms on their estate planning. Engaging a wealth management advisor could be instrumental in navigating these challenging waters and making informed decisions about gifts and inheritances.
Related Articles
- The Last Harvest? How Tax Changes Are Impacting British Farming
- Understanding the Impact of Inheritance Tax on Wealth Preservation
Tags: Inheritance Tax, Estate Planning, Wealth Management, Financial Advice, UK Budget 2025
For more insights, share this article on social media!
Facebook | Twitter | LinkedIn | WhatsApp | Email
