Wealthy clients have been asking more about inheritance tax (IHT) and estate planning, with many rethinking their options ahead of the Autumn Budget, research by Rathbones Group found.
Research found that 43% of clients expected to need advice on inheritance and estate planning over the next year, with 11% looking at gifting.
Pensions, retirement and later-life planning were also on people’s minds, mentioned by 19% of those surveyed.
Tax efficiency came up for 14%, and 5% were focused on managing cashflow.
Environmental, social and governance (ESG), impact investing, philanthropy, school fees and mortgages were less common topics, but still relevant for some.
IHT was one of the most talked about areas for possible reform.
Some expect the Government to cap lifetime gifts, raise the seven-year survival period to 10 years, or tighten taper relief.
Pensions could also be targeted, with rumours about reducing the tax-free portion of pension pots.
Simon Bashorun, head of advice at Rathbones private office, said: “With the Budget not expected until late November, we face a prolonged period of speculation.
“The reluctance – or perhaps inability – for the Treasury to quash rumours, is a bane to financial planning.
“Clients are understandably keen to get ahead of any potential changes, particularly around inheritance tax, gifting, and retirement planning.”
Bashorun added: “Since the significant changes to the inheritance tax (IHT) regime in the last Budget, speculation has continued to swirl.
“Clients, especially those with seven-figure pension pots, are reassessing their long-term plans and asking whether they should act before the Autumn Budget.
“With an estimated £5.5 trillion expected to pass between generations over the coming decades, it’s likely that governments will seek to claim a greater share. A tightening of current gifting rules cannot be ruled out.”
He said: “Good IHT planning starts with understanding what you can afford to give away.
“That means having a robust lifetime cashflow plan to assess your capacity to part with capital or income. From there, making use of current allowances and reliefs is sensible.
“Tax changes are rarely retrospective, so action taken today—with proper documentation – could be future-proof.”
He added: “There’s no one-size-fits-all solution. Effective IHT planning often involves a blend of outright gifts, trusts, qualifying investments, and insurance.
“Diversifying your approach not only balances control and tax efficiency, but also helps hedge against future rule changes.”
Bashorun also said clients should avoid making irreversible decisions based on speculation, as acting too soon can have costly results.
He added that people should not react emotionally to Budget rumours, as many ideas discussed never become law.
He advised that people should make use of tax-free allowances like the £20,000 ISA and the £60,000 annual pension allowance remains good practice.
He said reviewing finances and understanding overall position was important, especially for those exposed to pensions, property or dividend income.
Bashorun added that it was important to seek professional advice to help navigate uncertainty and build in flexibility for the future.
