The Autumn Budget introduced significant changes to the UK tax system. Now, nine months on, the impact is being felt and not just in legislation, but in the way clients are thinking, planning and engaging with their advisers.
From succession planning to pensions, the landscape has shifted. But with change comes opportunity - and we’re here to help you navigate it with confidence.
If you haven’t yet seen our 2024 Autumn Budget summary, it’s a helpful starting point for understanding the key headlines and what they mean for you.
Here’s where things currently stand on some of those major issues:
Inheritance Tax (IHT): BPR & APR reform
From April 2026, reliefs on Business Property Relief (BPR) and Agricultural Property Relief (APR) will be narrowed. A cap of £1 million will apply for 100% relief, with any excess value attracting 50% relief
Additionally, AIM-listed shares will face new restrictions.
Pensions
From 2027, untouched pension funds may fall within the scope of Inheritance Tax. The government’s message is clear: pensions are intended for retirement income, not estate planning.
Non-dom and non-resident reforms
Major changes are coming for international families and non-domiciled individuals:
- The remittance basis is being replaced by a new four-year Foreign Income and Gains (FIG) regime
- IHT will be based on UK tax residency rather than domicile
- Excluded property trusts and offshore structures face greater scrutiny.
How clients are responding
We’re seeing a shift from reactive to proactive planning. Clients are engaging earlier, asking deeper questions and seeking joined-up advice. Here are some of the key planning trends we’re seeing:
1. Earlier engagement
Clients are no longer waiting. To stay ahead, many families are now exploring simple steps to reduce inheritance tax exposure, including the early use of trusts and restructuring.
2. Trusts reconsidered
Despite compliance hurdles, trusts remain valued for control, protection and clarity.
3. Succession planning accelerated
Families are acting sooner, especially around business asset transfers and restructuring.
4. Corporate & partnership restructuring
Clients are restructuring to separate qualifying and non-qualifying assets and prepare for eventual exits.
5. Employee Ownership Trusts (EOTs)
EOTs are rising in popularity as tax-efficient succession options that align business continuity with employee engagement.
6. Family Investment Companies (FICs)
FICs remain popular for long-term control and gradual wealth transfer.
7. Business sales
Some clients are accelerating exits in light of reduced reliefs and economic shifts.
8. Pension strategy overhaul
Planning is shifting towards legacy-focused drawdown and avoiding IHT triggers. See our pension strategy guide for more information.
9. Emigration planning
International families are reassessing UK tax exposure, restructuring offshore trusts and exploring relocation.
Looking ahead: collaboration is key
While many details are still evolving, one thing is clear: early and tailored advice makes a difference.
We’re working closely with Independent Financial Advisers (IFAs) and private client solicitors to deliver holistic, multi-disciplinary support.
This is a new era of advisory - one where conversations are broader, advice is deeper and collaboration is essential.
Let’s talk about your plans
Whether you’re reviewing your current arrangements or facing complex decisions, we’re here to help you prosper. The earlier we start the conversation, the more value we can add. Please get in touch with Rebecca Horne-Smith or your usual UHY tax adviser if you wish to discuss further.
