Navigating IHT Changes for Non-Doms, APR/BPR, & Pensions
The Evolving Landscape
Recent years have introduced new complexities and challenges regarding how individuals protect their estates. Key regulatory shifts impacting the market include:
Non-domiciled individuals (non-doms) are now treated as long-term residents, requiring cover for new IHT liabilities before the updated rules take effect in April 2025.
Upcoming adjustments to Agricultural Property Relief (APR) and Business Property Relief (BPR) are coming into play this April.
Historically, insurers would often require clients to wait until a legislative effective date to put policies on risk, delaying crucial protection.
A Positive Shift in the Market
Fortunately, insurers are adopting a more pragmatic and positive approach to help clients secure their financial futures ahead of time. Most notably:
Insurers are now allowing pensions to be included in IHT calculations immediately.
Clients and advisors no longer have to wait until the pension-related changes come into force in April 2027 to set up their protection.
This forward-thinking approach enables clients to address future tax liabilities today, ensuring their estate is protected without unnecessary delays.
Other Insights
The importance of seeking advice about the upcoming changes to inheritance tax and pensions
The treatment of pensions within inheritance tax (IHT) is set to change materially. From 6 April 2027, most unused pension funds will be brought within the scope of an individual’s estate for IHT purposes. Historically, [...]
‘Gifting: Who should make the gift?’ published in Professional Adviser
A new article by Ken Maxwell, Director at John Lamb Hill Oldridge, has been published in Professional Adviser, addressing a key consideration in inheritance tax planning: who should make the gift? The article examines how [...]
‘How protection can help advisers support clients in funding or mitigating inheritance tax liabilities’ published in IFA magazine
In a recent article for IFA magazine, Holly Hill, Associate Director at John Lamb Hill Oldridge, examines the role of protection planning in supporting clients with inheritance tax liabilities. For high-net-worth and ultra-high-net-worth clients, protection [...]