A Belfast financial adviser has reported a surge in inheritance tax planning enquiries as families prepare for changes taking effect in April 2027. David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, said enquiries have risen by around 50% over the past year.
Stealth tax concerns
From April 2027, untouched pension funds will fall under inheritance tax levied by HMRC. Mr Stirling said the reforms were already having a considerable impact on his firm, especially among clients in their late 60s and 70s who had devoted decades to accumulating pension savings.
He said: "We've definitely seen at least a 50% increase in people talking to us about inheritance tax planning. It's become a much bigger part of the business, particularly among clients over 70 who have built up a good amount of wealth."
Rethinking pension plans
Mr Stirling believes numerous individuals still fail to recognise how substantial the changes could prove. He added: "It's a bit of a stealth tax. People have spent their working lives paying into pensions, believing that money could be passed on tax efficiently. Now they're having to rethink those plans."
Under the proposed reforms, pensions will no longer be automatically excluded from an individual's estate for inheritance tax purposes, meaning households with considerable pension wealth could face substantially higher tax bills than anticipated.
Advice to act early
Mr Stirling said this had prompted more clients to seek guidance years earlier than they had originally planned. He added: "We're encouraging people not to leave it until the last minute. If you're looking at certain types of inheritance tax planning, such as placing money into trust, the seven-year rule means you need to start thinking about it well in advance."
He recently advised one couple with assets worth several million pounds who opted to restructure portions of their finances after examining the upcoming changes. Rather than leaving everything as it was, they explored alternative methods of withdrawing pension income and transferring other investments into more tax-efficient arrangements as part of a long-term estate strategy.
Wider impact
Despite working with increasingly wealthy clients, Mr Stirling said the worries were often identical. He continued: "Whether someone has £500,000 or several million pounds, they usually just want straightforward advice they can understand. People don't want jargon. They want someone to explain what the changes mean for their family."
While the changes are expected to impact wealthier families most significantly, Stirling suggests numerous homeowners, especially in more expensive regions of the UK, might find themselves unexpectedly affected as increasing house prices coupled with retirement funds push estates beyond inheritance tax limits. His guidance is straightforward: "Don't wait until next spring to start asking questions. These aren't decisions you want to rush. The earlier people understand their options, the more choices they're likely to have."
