Managing inheritance tax changes and planning for the future - Kreston Reeves - IHT planning in London, Kent and Sussex.

Inheritance tax planning

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Your essential guide to managing inheritance tax changes and planning for the future

Welcome to our dedicated inheritance tax (IHT) planning hub, the perfect starting point for understanding, managing, and reducing your inheritance tax liabilities.

Whether you’re an individual looking to protect family wealth or a business owner wanting to plan for the future, our expert guidance helps you make informed decisions enabling you to achieve your objectives whilst considering both current and upcoming changes to tax legislation.

As a full service accountancy firm, we can help you by looking holistically at your personal and commercial circumstances to provide guidance and recommendations tailored toward your own goals and objectives.

Effective planning is key. Without proper advice, proposed changes to the inheritance tax rules could mean your estate is subject to a significantly higher IHT bill, but with a strategic approach, there are opportunities available to pass more on to your loved ones.

Contact us for more information about IHT
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Changes to UK tax legislation

From April 2026, changes to UK tax legislation are expected to alter the landscape of estate planning significantly, with limits being imposed on Business Property Relief (BPR) and Agricultural Property Relief (APR). Under current rules, 100% IHT relief can be obtained on assets that satisfy the qualifying conditions. There is no limit on the value of assets that can qualify for relief.

From April 2027 the value of unused pension funds will also become subject to inheritance tax.

These changes increase the importance of proactive planning. Structures and strategies that were once effective may not remain so, which mean that regular reviews and updating strategies and estate documents are essential.

Click here to download our essential guide explaining all of the up coming IHT changes and the steps you should consider taking

Timeline for IHT changes

From April 2026: Changes to Business Property Relief (BPR) and Agricultural Property Relief (APR)

  • Estates will only receive 100% IHT relief on the first £1 million of qualifying agricultural or business assets. Any value above this will receive 50% relief and will therefore be subject to an effective tax rate of 20%.
  • The £1m allowance will be per individual and will not be transferrable between spouses.
  • AIM shares and other non-main market listed shares will not benefit from the £1m allowance and the rate of relief will be reduced from 100% to 50%.

    • From April 2027: Changes to pension savings and death benefits

    Currently the value of most individuals’ undrawn pensions is exempt from Inheritance Tax on death.

    • When a pension scheme member dies with unused funds or without having accessed all their pension entitlements, those unused funds and death benefits will be treated as being part of that person’s estate and may be subject to Inheritance Tax.

    Getting expert help with IHT planning

    If you are concerned about the proposed IHT changes and the impact they will have on your estate, it is recommended you contact an expert to discuss planning options as soon as possible. How we can help:

    • IHT review: A tax expert can review your situation, based on estimated valuations, making recommendations and suggestions, tailored to your circumstances, with the aim of mitigating potential future tax liabilities.
    • Valuation of business assets: Once your objectives and desired course of action have been established you can commission a formal business valuation. From that, relevant share valuations, can be calculated to refine the plans.
    • Wills and estates documents: Depending on the recommendations it may be necessary to review your wills and other estate documents with a solicitor who specialises in this area.

    Contact us today to find out more.

Watch our video guides explaining important changes to APR and BPR. Contact us to help with your inheritance tax planning today.

IHT for business owners, farmers and land owners

As a business owner your inheritance tax strategy must go beyond personal estate planning and include your business interests. It is vital to have plans in place to protect your interests and the future of the business, both commercially and generationally.

We help you navigate:

Our team ensures your business remains protected and continues to provide for your loved ones, employees, and stakeholders. Contact us today to find out more!

Explore our full range of tax services for business owners
Get ahead and protect your legacy by proactively planning for IHT.

IHT for individuals

We understand the importance of developing a personal inheritance tax plan that balances financial efficiency with family priorities. When considering estate planning, most individuals aim to preserve wealth for future generations.

  • Navigate strategies for mitigating inheritance tax, such as lifetime gifting, trusts, charitable giving and life insurance policies.
  • Maximising personal allowances and exemptions.
  • Considering how property ownership, such as joint tenants vs tenants in common, affects your estate.
  • Protecting vulnerable beneficiaries with appropriate trusts.
  • Considering how best to fund your lifestyle, including use of pensions, and who should benefit from your pension following your death.
  • Planning around marriage, divorce, and blended families.

We work closely with you to develop a personal inheritance tax plan that balances financial efficiency with family priorities. Speak with us today to find out more.

Explore our full range of personal tax services
Kreston Reeves provides global accountancy services to our international clients. As international accountants, we can provide global accountancy services to your organisation.

International considerations?

Our support for you doesn’t stop at the UK border. From North America to Asia Pacific, in more than 120 countries across the globe, our global network of international tax specialists can provide seamless guidance on your international tax matters. Whether your international tax needs are personal, commercial or both, our global tax experts can help.

On 6 April 2025, the UK Inheritance Tax (IHT) rules changed significantly moving away from a domicile-based framework to one based on long-term UK residency (LTR).  Once classified as an LTR, individuals are liable for IHT on their worldwide assets, regardless of their domicile status. Trusts established by non-domiciled individuals may now fall within the IHT scope if the settlor was an LTR at the time of settlement or departure.

These changes have far-reaching implications for estate planning, particularly for non-domiciled individuals, international families, and business owners with UK ties.

Now is the time to act:

  • 1. Reviewing your estate and trust structures immediately.
  • 2. Assessing your UK residency history to determine your LTR status.
  • 3. Seeking professional advice to mitigate exposure and explore planning opportunities under the new regime.

Proactive planning today can protect your legacy tomorrow.

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Get help with inheritance tax planning and management

It’s easy to put off inheritance tax planning, but a little preparation now can make a big difference later. Whether you’re looking out for your family or your business, taking action helps reduce stress, protect what matters most, and bring peace of mind for the future.

For further help, guidance and support with inheritance tax planning and management, contact us today. We combine deep tax expertise with a personal, client-first approach. Our inheritance tax specialists stay ahead of legislative developments and build bespoke, forward-thinking strategies to secure your financial legacy.

Our benefits include:

  • UK-based experts with years of IHT experience.
  • Holistic advice tailored to individuals and business owners.
  • Seamless collaboration with solicitors and financial advisers.
  • Transparent, proactive service at every stage.
Contact us today for more information on managing your IHT efficiently

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    Download our detailed IHT guide today

    Understand the upcoming IHT changes - a detailed guide explaining the actions you should take to efficiently manage your IHT.

    Understanding the upcoming IHT changes

    Inside you'll find details of all the IHT changes taking effect from 6 April 2026, including examples of what these changes could mean for you and practical steps you can take to mitigate the changes efficiently.

    Download now

    Key contacts

    Richard Heasman

    Richard Heasman BA (Hons) ACA MAE

    Partner and Head of Forensic Accounting

    +44 (0)330 124 1399 Email Richard
    Jo White

    Jo White FCA CTA

    Tax Partner

    +44 (0)330 124 1399 Email Jo
    Gemma Spencer

    Gemma Spencer BA

    Solicitor, Partner and Joint Head of Legal Services

    01403 253 282 Email Gemma

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