Inheritance Tax & Estate Planning
Inheritance Tax is becoming an increasingly important consideration for families across the UK. Rising...- 20 May 2026
Posted: 20 May 2026
Inheritance Tax is becoming an increasingly important consideration for families across the UK. Rising property values, static tax thresholds and upcoming changes to pension treatment mean many people who may never previously have considered Inheritance Tax are now finding themselves potentially affected.
Planning ahead is no longer something only relevant to very high-value estates. Reviewing your affairs regularly can help ensure your wishes are reflected accurately and may also provide opportunities to minimise future tax liabilities. Equally important is staying informed and protecting yourself against misinformation or fraudulent schemes that seek to exploit uncertainty.
More families are being affected by Inheritance Tax than ever before. A record-breaking £8.5 billion in Inheritance Tax (‘IHT’) revenue was hit for the period April 2025 to March 2026 according to HM Revenue & Customs (‘HMRC’) data. Official UK Government guidance states that you should review your will every 5 years and after any major life change.
It is estimated that HMRC collected approximately £5.33 billion in IHT during the 2020 to 2021 tax year, which means over £3 billion of IHT has been received during the last 5 years alone. These figures demonstrate that more estates are becoming subject to IHT. With Nil Rate Band thresholds due to stay at current levels until 2031 and asset values on the rise, more and more estates are becoming liable for IHT.
In addition, it is anticipated that from April 2027, when unused pension benefits will start to be included within estates for IHT purposes, many families are likely to face increased exposure. This proposed change may affect families who have historically viewed pensions as an important part of their estate planning.
Because of this, scammers are actively exploiting the anxiety surrounding the inclusion of pension pots in Inheritance Tax calculations. It has been reported that fraudsters are now beginning to use scare tactics to push fake “loophole” schemes, premature withdrawals, and high-risk investments, potentially costing victims thousands of pounds.
Pension providers have confirmed that they do not contact their customers via telephone. If you have any concerns, you should contact your provider as soon as possible.
This is a stark reminder that we should be considering more frequent estate planning to establish whether tax can be mitigated and ensuring as much of our Estates as possible are passing to the people we want.
Early planning can often create more options and allow families to make informed decisions about their affairs. Reviewing arrangements regularly can provide reassurance and help ensure that plans continue to align with changing circumstances and legislation.
If you are concerned about IHT or need help with estate planning and would like to meet with one our Private Client team to discuss in more detail, we offer 30-minute free consultations. You can contact our offices across Essex and Suffolk; full contact details can be found on our website here. Alternatively send us an email and a member of our team will be happy to help.
Emma is a Solicitor in the Private Client team and qualified in 2017 after completing her training contract at an Essex firm. Emma specialises in Wills, Trusts, Probate and Estate Administration, and prides herself on being approachable and empathetic whilst providing practical advice tailored to each client’s individual needs.
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