Treasury Considers Inheritance Tax Changes

The UK Treasury is considering major changes to inheritance tax (IHT) rules in an effort to help close the country’s budget deficit, projected to exceed £40 billion. These proposals, if introduced, could significantly impact how estates, including care business assets are passed on to future generations.

Possible Changes on the Horizon

While no final decisions have been made, current discussions include:

• ‍Capping tax-free lifetime gifts – limiting how much can be given away without triggering IHT.‍
• Reviewing the “seven-year rule” – potentially reducing or removing the current taper relief on gifts made between three and seven years before death.‍
• Including pensions in IHT calculations – from 2027, unused pension pots could become taxable.

These measures would represent some of the most significant changes to IHT in years and could have wide-ranging implications for personal estates and care business succession planning.

Why It Matters for Care Sector Professionals

Many care business owners have substantial value tied up in property, pensions, and business assets. Changes to IHT could alter the financial strategies that owners and their families rely on to protect and pass on their hard-earned wealth.

Acting early is key

Reviewing your estate plans now, before any changes come into effect, could make a significant difference in how much of your estate is preserved for your chosen beneficiaries.

Speak to Andy Cooper, Financial Adviser

Understanding these potential changes and how they might affect you can be complex. That’s why we recommend speaking with Andy Cooper and independent financial adviser with Kingwood Law IFA Limited and partner of Quality Care Group. Andy specialises in helping care sector professionals and business owners plan for the future, ensuring their wealth is protected in line with both current and anticipated tax rules.

📞 Get in touch today to arrange a confidential conversation with Andy and review your plans before the rules change.