As the year draws to a close and we gather with loved ones, it’s not just the turkey and tinsel we should be thinking about. It’s also a good time to plan ahead.
The rules on inheritance tax are going to change significantly. From April 2027 pensions will be included in your estate for tax purposes. With the nil‑rate band frozen at £325,000 and anything above taxed at 40%, many families who’ve never faced inheritance tax before could suddenly find themselves affected. It’s wise to start thinking about your estate now, rather than waiting until the changes arrive.
A gift for the future
Christmas is the perfect time to reflect on family and the future. Most of us plan carefully for festive celebrations, and it’s wise to plan our estates too.
Inheritance tax planning doesn’t need to be daunting; it’s about making thoughtful choices today that will protect your family tomorrow. Whether it’s cash for grandchildren, vouchers for nieces and nephews, or thoughtful tokens for friends, every gift reduces the taxable value of your estate while spreading festive cheer. Combined with professional advice, small steps like this can make a big difference in protecting your family’s future.
We suggest that you take a look at our other blogs for some useful ideas on making use of your exempt allowances. Consider gifting, with tax planning in mind, as part of your Christmas plans.
Alongside wrapping presents for others this festive season, you could also give yourself the gift of peace of mind by planning for the years ahead.
