Caroline Foulger highlights key strategies for navigating 2027 inheritance tax changes in WealthBriefing
Caroline’s comments were published in WealthBriefing, 16 September 2025, and can be seen here.
Caroline Foulger, Partner in our Private Client department, explores the implications of upcoming UK inheritance tax (IHT) changes due in April 2027, particularly the inclusion of unused pension funds within the taxable estate.
With IHT thresholds frozen until 2030, more families especially those with modest estates will be affected. Caroline notes that pensions, once a useful tool for mitigating IHT, will now require a rethink in estate planning strategies.
She highlights that the proportion of estates subject to IHT is expected to rise from 4.6% to 6%, with many falling below the £1 million mark. As average wealth among older age groups exceeds IHT thresholds, families must reassess their financial plans. Caroline recommends revisiting traditional tools such as gifting allowances, discretionary trusts, and life insurance policies to help offset future liabilities.
Caroline concludes by urging families to begin planning early and holistically, considering not just tax efficiency but also long-term care and lifestyle needs. The 2027 pension changes, she argues, should prompt broader conversations around legacy and financial security, ensuring that estate plans remain flexible and aligned with personal values.
Read more on the WealthBriefing website [external link].