Act now to prepare for upcoming inheritance tax changes in 2025
The Autumn budget 2024 included a number of changes that will have a significant impact on families and their tax liabilities, particularly in regards to inheritance tax (IHT). We are therefore advising our clients and contacts that they take the time to understand these changes and also review their estate planning and policies to limit the amount that could be paid should the worst happen.
In regards to inheritance tax changes in 2025, the budget detailed that there would be a freeze on the IHT nil rate band and residence nil rate band thresholds until 2030. This freeze means more families are likely to be impacted as property values continue to rise, bringing many families closer to or over that threshold. Changes to tax relief and pension rules could also lead to unexpected tax liabilities which will need to be accounted for.
Matthew Rose, wills, trust, and probate partner at GA Solicitors, warns that failing to plan for inheritance tax changes 2025 could lead to substantial financial losses for loved ones, as many remain unaware of the available options for mitigating inheritance tax.
New research from The Association of Lifetime Lawyers, a membership body of expert lawyers from across the UK, reveals a sharp increase in concerns around IHT. A staggering 80% of their lawyers have reported a surge in IHT-related enquiries over the last six months alone, with interest spiking further (68%) following the latest budget.
More than three-quarters (77%) have observed a growing trend of clients exploring the option of gifting assets during their lifetime to reduce the inheritance tax bill their loved ones might have to pay. Despite this rising demand, 66% of lawyers believe many people remain unaware of their options for inheritance tax planning.
Matthew and the rest of GA’s trust and tax planning team in Plymouth, emphasise the urgency of taking action before it’s too late: “The inheritance tax landscape is evolving rapidly, leaving many uncertain about how to safeguard their loved ones and protect their assets. We’ve noticed a rising interest in property gifting, along with increasing concerns about pension fund access, which could put long-term financial security at risk.
“These complex changes have left many confused. Taking proactive steps now can reduce inheritance tax impact and ease financial and emotional stress. While estate planning discussions may be challenging, openness is key to securing your loved ones’ future.”
Matthew also adds: “From April 2027, most unused pension pots and lump sum death benefits will be included in a person’s estate for inheritance tax purposes, potentially pushing many over the threshold. Given the impact, now is a good time to review your will and ensure your legal and financial arrangements are tax efficient and protect the assets you will have spent a lifetime building.”
Seeking professional advice from a specialist solicitor or lawyer, particularly an Accredited Lifetime Lawyer, can be invaluable. At GA Solicitors, we can provide expert guidance on crucial matters such as Wills, Inheritance Tax and inheritance tax changes 2025, Lasting Powers of Attorney and Probate. Our dedicated Lifetime Lawyers and inheritance tax specialists in Plymouth, Matthew Rose and Catherine Bailey, offer experienced and compassionate support to help you plan for the future with confidence.
GA Solicitors in Plymouth is an established law firm, which is ranked in Chambers UK, Chambers High Net Worth and The Legal 500. You can be assured you are in the best possible hands.
Call the team today on 01752 203500 or email enquiries@GAsolicitors.com.
For more information on the Autumn budget and its numerous implications for inheritance and tax planning, read our article here.
All content on this website (inclusive of guides, blogs and imagery) is strictly copyrighted by Gill Akaster LLP, trading as GA Solicitors. It is not to be used by any third party without prior contact and permission. Any requests for content should be sent to katy.mckenna@GAsolicitors.com.