Wealthy clients are increasingly seeking advice on inheritance tax and estate planning, as speculation around possible tax changes gathers pace ahead of the Autumn Budget, says Rathbones Group.
More than two-fifths (43%) of clients with up to £5 million in investable assets expect to need advice on inheritance and tax planning over the next year, with gifting accounting for 11%.
According to the wealth manager, interest in inheritance-related matters has risen sharply since the start of the summer, as rumours swirl that the Chancellor could consider capping lifetime gifts, extending the seven-year survival period and tightening taper relief.
Pensions, retirement and later-life planning also remain key concerns among wealthy clients, cited by nearly a fifth (19%) of respondents.
Rathbones said other topics of interest include tax efficiency (14%) and cashflow management (5%).
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.”
With an estimated £5.5 trillion expected to pass between generations over the coming decades, Bashorun said it is “likely that governments will seek to claim a greater share” and warned that a tightening of current gifting rules cannot be ruled out. As a result, clients are reassessing their long-term plans and seeking advice on whether they should act before the Budget takes place.
Bashorun added: “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.
“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.”
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