Helping You Prosper in a Shifting Tax Landscape

The Autumn Budget introduced significant changes to the UK tax system. Now, nine months on, the impact is being felt, not just in legislation, but in the way clients are thinking, planning, and engaging with their advisers. But with change comes opportunities and we’re here to help you exploit them.

By Rebecca Horne-Smith – Senior Tax Manager

Key Budget Changes at a Glance

Inheritance Tax (IHT): BPR & APR Reform

• Reliefs are being narrowed from April 2026, with a cap of £1m for 100% relief on combined BPR and APR assets, with any excess value attracting 50% relief.
• AIM-listed shares also face new restrictions.

Pensions

• From 2027, untouched pension funds may fall within IHT scope.
• The message is clear: pensions are for retirement income, not estate planning.

Non-Dom and Non-Resident Reforms

• The remittance basis is being replaced by a four-year Foreign Income and Gains (FIG) regime.
• IHT will be based on UK tax residency, not domicile.
• Excluded property trusts and offshore structures face greater scrutiny.

How Clients Are Responding

We’re seeing a number of trends and a shift from reactive to proactive planning. Clients are engaging earlier, asking deeper questions, and seeking joined-up advice.

Personal Tax Planning

Trusts are being reconsidered especially with regard to estate planning. Despite compliance hurdles, trusts are valued for control, protection, and clarity.

Many are now revisiting their pension funds as there’s renewed focus on drawdown, annuities, and legacy planning. A pension pot could even be liable to a 67% effiective tax rate!

Increasing numbers of request for help are from international families reassessing their UK tax exposure and exploring relocation. Those with off-shore trusts are also re-assessing their UK exposure and preparing for future tax liabilities.

Business Planning

Business owners are taking advice, especially around business asset transfers, restructuring and succession planning.  We’re advising on separating qualifying/non-qualifying assets and preparing for exits with corporate and partnership restructuring solutions.

An interesting and tax-efficient option for business owners, and one we are specialists in is Employee Ownership Trusts (EOTs). EOTs are gaining traction as tax-efficient, people-focused succession tools.

Another consideration is the set up of Family Investment Companies (FICs) which remain popular for long-term control and gradual wealth transfer.

These solutions are not for everyone though, and some clients are accelerating exits in light of reduced reliefs and economic shifts. When you are getting ready to sell your business, it’s worth taking advice, as selling at the right time and under the right circumstances can make a huge difference to the final settlement.

Looking Ahead: Collaboration Is Key

While many details are still evolving, one thing is clear: early, 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 and 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, and the more of your assets you can potentially keep. Do get in touch.