The government’s planned reforms to inheritance tax, due in 2026 and 2027, signal a moment of recalibration for those with complex estates or significant business holdings.
The changes centre on key reliefs that have underpinned intergenerational wealth planning for decades. Business and agricultural reliefs, long regarded as cornerstones for entrepreneurs and landowners, are expected to face new restrictions from 2026. Simultaneously, adjustments to pension treatment in 2027 will alter how retirement assets can be passed on, potentially influencing how investors structure portfolios and manage liquidity in later life.
Effective estate planning will no longer rest solely on reliefs and exemptions, but on how intelligently an investor balances cashflow, gifting, and protection tools. Reviewing wills, revisiting pension nominations, and reassessing trust arrangements are becoming essential exercises rather than administrative afterthoughts.
Cashflow modelling is fast becoming a central decision-making tool. Similarly, annual gift allowances and surplus income strategies, often underused, can reduce taxable estates when applied consistently over time. Even life insurance, traditionally viewed as a safety net, is now being repositioned as a practical mechanism to offset future tax liabilities and support smooth asset transfers.
Arbuthnot Banking Group PLC (LON:ARBB), operating as Arbuthnot Latham, offers private and commercial banking products and services in the United Kingdom. Established in 1833, Arbuthnot Banking is headquartered in London, United Kingdom.
