Advisers are still dealing with the fallout of last year’s Budget as they brace for more announcements and possible changes this month which could change the way they advise.
Diana French, cheif commercial officer of retail distribution at Triple Point, said pensions coming into the scope of inheritance tax, announced back in 2024, was a “huge change” for advisers.
Ahead of the change coming into force in April 2027, French said: “A lot of wills have been revisited and clients that did not have inheritance tax issues before now have some.
“The amount of advice on inheritance tax that has been sought has definitely increased.
“There is still quite a bit of uncertainty about the rules and where the burden has fallen is on the beneficiary.”
French said this burden on the beneficiary could change the way financial advisers work.
“What is going to happen is the roles of financial advisers will change,” she said. “They will have to help beneficiaries through that process.
“Another thing that is going to change with regards to pensions is where that money is going to come from to pay inheritance tax.”
French anticipates this increased demand for advice on inheritance tax and pension advice will continue.
“The difference between getting advice and not getting advice in these situations is vast, it just shows the power of really good financial planning,” she added.
As people look for ways to reduce their inheritance tax bills, French said there has been an increased interest in investments in companies that qualify for business relief.
Once these investments, which are higher risk, have been held for at least two years, and providing they are still held when the investor dies, the shares can be passed to beneficiaries without them facing an IHT bill on the amount invested.
French said the demographic of investors turning to these solutions was getting younger and Triple Point was seeing more people in their late 60s.
As people are looking more at their tax bills ahead of the Budget, French said VCTs are also becoming more popular.
Ahead of the Budget, French said keeping calm in the face of uncertainty is key.
“People are making some quite big decisions because of uncertainty to do with the Budget,” she said. “Some certainty and calm around it would be good.
“I have so much empathy with advisers because there is so many changes to keep on top of all the time.”
tara.o’connor@ft.com
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