Maximise wealth through Personal Tax Planning and Inheritance Tax Advisory
Maximise wealth through Personal Tax Planning and Inheritance Tax Advisory
Why Tax Advisory Planning matters
Managing your personal and family finances has never been more important. The UK tax landscape is changing significantly, particularly around Inheritance Tax (IHT). From April 2026, reforms will restrict some of the most valuable reliefs that many families and business owners currently rely on.
Without careful planning, estates may face large Inheritance Tax (IHT) charges at 40% above available allowances and reliefs. With the right advice, much more of your wealth can be preserved and passed on.
The importance of Inheritance Tax (IHT) Planning
Inheritance Tax (IHT) planning is about ensuring that the value you have worked hard to build is protected for the next generation. It requires more than just a Will, it needs a joined-up strategy across your estate, your family’s circumstances, and your long-term goals.
Key elements include:
• Estate valuation - understanding your total Inheritance Tax (IHT) exposure, including property, investments, pensions and life assurance policies
• Wills and succession planning - ensuring your Will is up to date, tax-efficient and aligned with your wishes
• Trusts and wealth structuring - using trusts appropriately to protect assets, provide control and in some cases reduce IHT (noting that draft reforms may alter trust taxation in future)
• Gifting strategies - making use of annual exemptions, the “normal expenditure out of income” exemption and potentially exempt transfers (PETs), which fall out of charge if you survive seven years
• Business and Agricultural Property Reliefs (BPR/APR) - ensuring trading businesses and farmland qualify and remain compliant with HMRC’s conditions
• Reviewing your business structure can be crucial for Inheritance Tax (IHT) planning, as the right structure has the potential to ring-fence valuable assets, ensure that trading activities qualify for Business Property Relief (BPR), provide flexibility in passing shares between family members and prepare the business for a future sale or succession in the most tax-efficient way
• Pension planning - pensions are currently outside the Inheritance Tax (IHT) net, but reforms are expected from April 2027 to include certain death benefits in estates, so early planning is recommended
• Life assurance planning - arranging policies in trust so proceeds are paid outside the estate and available to meet any Inheritance Tax (IHT) due
Upcoming Inheritance Tax (IHT) changes you need to prepare for
The confirmed reforms from 6 April 2026 mean:
• Capped reliefs - 100% Business and Agricultural Property Reliefs (BPR/APR) will be limited to the first £1m per estate
• Reduced relief beyond the cap - value above £1m will qualify for only 50% relief, leaving more exposed to Inheritance Tax (IHT)
• No transfer between spouses - unlike the nil-rate band (currently set at £325,000), the £1m cap cannot be transferred between spouses or civil partners. Planning Wills and ownership accordingly is therefore essential
• Instalment options - Inheritance Tax (IHT) on Business and Agricultural Property Reliefs (APR/BPR) assets will still be payable over 10 years and will remain interest-free only where the asset qualifies for relief
In conclusion, these reforms mean that families who previously assumed their farms or businesses were fully protected could face significant liabilities unless they act now
Where Personal Tax Planning fits in
Alongside Inheritance Tax (IHT), Personal Tax planning strengthens your position by:
• Making the most of allowances and reliefs for income and capital gains
• Planning disposals carefully following the reduced Capital Gains Tax (CGT) annual exemption (£3,000 from April 2024)
• Reviewing pensions and investments so they complement your estate plan
• Coordinating retirement income with succession and inheritance objectives
Personal Tax and Inheritance Tax (IHT) planning must work together to give you the best outcome.
How can Vortax support you?
Vortax are one of our trusted partners who specialises in providing expert advice on Personal Tax Planning and Inheritance Tax Advisory. Their goal is to help you make informed decisions that benefit both you and your family, now and in the future.
Contact us
If you would like to find out more or have a free consultation with Chris Lock from Vortax to find out how his expertise could benefit you, please email referrals@astonshaw.co.uk we would be more than happy to make the introduction