Inheritance Tax (IHT) has long been one of the most contentious areas of financial planning. With frozen thresholds and rising property values, more families than ever are already being caught in the IHT net.
And from April 2027, things are set to get even more complex. As announced in the October 2024 Budget, pensions are expected to become part of a person’s estate for IHT purposes. For many households, particularly here in the South East where property values are high, this could mean a significant increase in the tax payable when wealth is passed on.
With these changes approaching, it’s important to understand how they may affect you. Reserve your place at our free workshop today – spaces are limited.
Why does this matter?
- Higher tax bills for ordinary families – when you combine the value of a family home, pensions, and savings, many estates will exceed the IHT threshold. That can result in 40% of your wealth going to the taxman, rather than your loved ones.
- Frozen allowances mean more people pay – the nil-rate band and residence nil-rate band remain frozen until 2028, meaning inflation and rising asset values are quietly pushing more families into IHT liability each year.
- Allowances could be reduced further – by including pensions within estates, some allowances may be lost altogether, potentially increasing the effective tax rate beyond 40%.
Together, this means a couple could currently pass on up to £1 million without paying IHT. But anything above these allowances could be taxed at 40%, which can quickly add up. Especially in areas like the South East where property values are high.
But there are steps you can take
The good news is that there are ethical strategies to help reduce the impact of IHT. These include making full use of allowances, understanding how different assets are treated, and putting the right structures in place to protect your legacy.
Taking action early gives you more options. Plus, greater peace of mind that what you’ve built will go to the people you care about.
Inheritance Tax Workshop
To help you understand these changes, and what they could mean for your family, Citrus Financial is hosting a free event:
- Westerham Golf Club, Kent
- Tuesday 7th October 2025
- Arrive from 10:30am for refreshments
- Presentations start at 11:00am
- Complimentary buffet lunch at 12:30pm
You’ll hear from:
- David Braithwaite, founder of Citrus Financial and the BBC Radio Kent “Money Mentor”, who will explain the upcoming pension changes and practical steps to protect your wealth.
- Karen Gorbutt, an experienced adviser at Citrus Financial, who will outline how inheritance tax rules interact with wider estate planning and what allowances can be used to minimise the impact.
Reserve your place today
Places are free but limited and will be allocated on a first-come, first-served basis.
Want to make sure your family keeps more of what you’ve built?
Tax treatment varies according to individual circumstances and is subject to change.
Inheritance tax planning, trusts, tax planning, and estate planning are not regulated by the Financial Conduct Authority.
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 19/08/2025
