Mark Stewart

The survey of 2,001 UK adults aged 50+ reveals a widespread lack of understanding about the upcoming tax changes, with just 26 per cent claiming they fully grasp the implications. The findings signal a pressing need for law firms, tax advisers, and estate planners to proactively educate and support clients navigating the transition.

The survey also highlighted:

• limited awareness: while 54 per cent of respondents are aware of the IHT reforms, they remain unclear on personal impact, leaving them vulnerable to missed planning opportunities;
• lack in formal planning: less than half (41 per cent) have a structured estate plan in place, while 35 per cent acknowledge they should plan but have not begun the process, creating legal and financial risk; and
• underutilisation of professional advice: only 16 per cent have sought professional guidance—despite the complexity of phased tax relief reductions and domicile rule shifts.

The Autumn Budget 2024 introduced significant changes to IHT particularly around Business Property Relief (BPR) and Agricultural Property Relief (APR). Relief will now only apply fully to the first £1 million of qualifying assets, with the remainder taxed at an effective 20 per cent rate.

“These reforms fundamentally shift the taxation landscape for estates, businesses, and trusts,” said Mark Stewart, partner at Brodies LLP. “There is a clear knowledge gap among those impacted, underscoring the vital role of legal, tax and wealth professionals in guiding clients through structured succession planning.”

The survey highlights the urgent need for proactive dialogue between professional advisers and clients, and;

• only 10 per cent of respondents have engaged in detailed discussions about inheritance with their families;
• fairness and the risk of dispute are leading concerns among respondents, 28 per cent cite equitable distribution as a key issue, while 23 per cent fear family conflict due to wealth transfer.

Without robust estate planning and professional advice, families risk contentious probate litigation, unnecessary tax exposure, and uncertainty over asset protection strategies.

“Professional advisors must take a leadership role in informing clients,” added Mr Stewart. “From succession structuring to navigating relief restrictions, we must ensure clients understand their tax position and the long-term consequences of inaction.”