Demand for inheritance tax (IHT) planning has seen a sharp increase, with advisers reporting more client enquiries and turning to flexible solutions such as Business Relief (BR) to address a growing planning gap, research commissioned by Foresight Group revealed.
According to the survey of 200 financial advisers, half of respondents believed more than 50% of their clients are likely to face IHT liabilities based on current assets and liabilities.
Advisers estimated that around one third of their clients should have considered IHT or broader estate planning but have not yet done so.
They suggested several reasons for this hesitancy, including a desire to retain access and control of assets, cited by 73% of respondents, administrative delays at 66%, perceived complexity of IHT solutions at 51% and policy uncertainty also at 51%.
Despite this, advisers said conversations are increasing.
89% reported a rise in IHT-related enquiries over the past year and 77% said they are taking a more proactive approach to initiating discussions with clients.
BR has become the most commonly used IHT strategy among advisers, with 63% saying they used it in the past year, ahead of protection products at 55% and discretionary trusts at 43%.
61% expected BR usage to increase further over the next two years and 58% said they plan to introduce it earlier in the planning process where appropriate.
40% said they are seeking more competitive or innovative BR propositions as they look for differentiated options to help engage clients.
Hugi Clarke, partner at Foresight Group, said: “Our research shows that ahead of potential reforms in April 2026, advisers report that ongoing volatility adds complexity into long-term planning and increases the likelihood of client hesitation – often to their own cost.
“With more advisers asking for innovation in estate planning, we are working hard to support our clients across the UK financial advisory market with simpler, more accessible solutions.”
Nick Morgan, partner at Foresight Group, added: “The message from advisers is clear: demand for IHT advice is rising sharply, but clients remain hesitant to act.
“BR is increasingly seen as the bridge between inaction and control, helping clients keep flexibility while addressing the IHT challenge head-on.
“This research points to a growing opportunity for advisers to futureproof their client’s estate planning.
“With younger generations taking a more active role in financial decisions, advisers see BR as a valuable tool for maintaining relationships across families and ensuring continuity of assets.”
