Inheritance tax changes prompt planning review

Recent changes to inheritance tax (IHT) rules are prompting business owners, farmers and families to review their estate planning arrangements.

From April 2026, more business and agricultural assets are expected to fall within the scope of IHT, while from April 2027 self-invested and personal pension schemes are also due to be included when calculating inheritance tax liabilities.

The changes could result in a greater proportion of an estate being subject to tax, potentially reducing the value passed on to future generations. Estate planning strategies that were previously effective may no longer provide the same level of protection, particularly where pension arrangements have formed a key part of succession planning.

As a result, legal experts are advising individuals and business owners to review their wills and wider estate planning arrangements to ensure they remain appropriate and tax-efficient. Early planning can often provide greater flexibility and help avoid unexpected consequences for beneficiaries.

Those most likely to be affected include business owners, farming families and individuals with significant pension assets. Reviewing existing arrangements now may help identify areas that could be affected by the forthcoming changes and provide time to consider alternative planning options where appropriate.

Watson Ramsbottom's Wills and Estate Planning team advises clients across Lancashire on wills, estate planning and succession matters, including the potential implications of inheritance tax changes. The team works with clients to review existing arrangements and develop strategies that reflect their personal, family and business circumstances.

For more information or to arrange a consultation, contact Watson Ramsbottom on 01254 672222 or email [email protected].