The recent Autumn Budget has introduced significant changes to Inheritance Tax (IHT), making estate planning more complex and, for some, more costly.

These changes will affect how families pass on wealth to their loved ones, potentially impacting everything from homes and savings to pensions.

Many people across the country are already revisiting their wills to ensure their plans align with the new rules. So, is it time for you to review yours, too?

Inheritance Tax thresholds are frozen until 2030

Under the new budget, the IHT nil rate band (NRB) and residence nil rate band (RNRB) will remain frozen at £325,000 and £175,000, respectively, until 2030.

While these thresholds might appear somewhat generous, property and asset values have increased significantly since the NRB was last adjusted in 2009, meaning more estates are likely to exceed these thresholds, potentially increasing IHT costs.

For married couples or civil partners, these allowances can be combined to create a threshold of up to £1 million. However, this only applies if certain claims are made within two years of the surviving spouse’s or partner’s death.

Other exemptions and reliefs may also apply, so for personalised guidance on optimising your estate, contact Ansons Solicitors today.

Changes to Agricultural Relief and Business Property Relief

Adjustments to Agricultural and Business Property Relief (APR and BPR) are set to be implemented from April 2026 and could heavily impact family farms and businesses.

The change means that the first £1 million of qualifying agricultural or business assets will still enjoy 100 per cent IHT relief, but values exceeding this threshold will only receive 50 per cent relief.

As family enterprises often rely on these reliefs to pass down assets tax-efficiently, careful planning will be essential to minimise exposure to IHT and protect the legacy of family-owned assets.

Reduced relief on AIM and unlisted shares

If you have invested in companies not listed on a major stock exchange, including AIM shares, IHT relief will reduce from 100 per cent to 50 per cent as of April 2026.

Many families have previously turned to AIM shares for tax relief benefits and a way to growth their wealth, but with this reduction, it is worth exploring how your portfolio might be impacted.

A review of your will and investment strategy now can help you make the most of your options.

Unused pension funds will be taxable from 2027

From April 2027, unused pension funds and death benefits could be subject to IHT. This is a significant change that affects anyone planning to pass on pensions to loved ones (who are not their spouse).

If you have been counting on pension savings as a tax-efficient way to provide for family members, a review can help you prepare for any changes and avoid potential complications.

Consider speaking with a professional to explore alternatives or adjustments that ensure the smooth transfer of your pension wealth.

How Ansons Solicitors can help you

With so many changes, a well-structured will can make a difference, ensuring that your wishes are fulfilled and that your family is not burdened by preventable tax liabilities.

If you would like advice on how to minimise the IHT liability for your dependents when planning your will, our wills and probate solicitors can help you.

Whether it is a simple review or a more in-depth restructure, our expert team can help you adapt to the latest changes with confidence.

Our wills and probate solicitors are based in Sutton Coldfield, Cannock and Lichfield.

Contact Ansons to discuss how best to protect your estate and your family’s future.