IHT

From 6 April 2027, unused pension funds and certain death benefits will be included within an individual’s estate for inheritance tax (IHT), marking a significant shift in long-standing UK tax planning. Pensions, particularly defined contribution schemes, have historically sat outside the estate and been used as a tax-efficient means of passing on wealth; however, this reform brings them into closer alignment with other assets. As a result, some estates may face increased IHT exposure, and existing strategies may need to be reviewed, especially for those with substantial pension savings or estates near current thresholds. The change also introduces more complex interactions between IHT and income tax for beneficiaries, reinforcing the need for a more joined-up approach to retirement and estate planning ahead of the April 2027 implementation date.

Estate planning is more than preparing a Will, it’s about creating certainty for your family, protecting wealth, and ensuring your wishes are carried out when it matters most. Many families delay these conversations, but with the right advice, you can reduce inheritance tax, protect your business, and provide lasting clarity for those you care about. At Ward Williams, we bring together legal, financial, and tax expertise to design estate plans that are practical, comprehensive, and built for peace of mind.

Ward Williams urges UK business owners to prioritise creating Lasting Powers of Attorney (LPAs) and Wills to protect their enterprises. The article emphasises the importance of separate business and personal LPAs, highlights key actions for business owners, and announces a free Business Breakfast event in Uxbridge on 12th September, 2024, focused on securing business legacies through LPAs and Wills. Ward Williams offers specialised services to help business owners navigate these complex legal and financial matters, ensuring business continuity and peace of mind.

Financial gifts can make a huge difference for children and grandchildren but care needs to be taken to ensure they are carried out tax efficiently.

Lifetime gifting could include making cash gifts from surplus income, charitable giving and taking advantage of annual exemptions and the small gifts exemption.

In the recent budget (delivered on 15 March 2023), the Chancellor, Jeremy Hunt, announced a number of measures that are intended to increase “growth” and support efforts to (a) encourage inactive individuals to return to work, in particular those aged 50 and above, and (b) remove incentives to reduce hours or leave the labour market altogether. Of particular interest are the t ...