Tax expert warns of looming inheritance tax changes: How families can prepare before the Autumn Budget

Steve Bish, founder of Steve Bish Estate Planning in St Albans, Hertfordshire, has warned that changes to inheritance tax (IHT) could increase the burden on families, with the tax already one of the "most hated" in the UK. The expert, known for his practical estate planning advice, called on individuals to “maximise” their use of current tax-free gifting opportunities before the government introduces any new restrictions.

Criticising the government’s potential reforms as “tone-deaf,” Steve highlighted the growing concern among industry professionals about what might be in store. "The pessimism surrounding the already-announced changes is palpable, but there’s even more uncertainty about what further cuts or restrictions could come with the next budget," he said.

Steve’s warning comes as proposals indicate a potential clampdown on gifting allowances and other tax reliefs, potentially making inheritance even more costly for families. "It seems like the government may make the most hated of all taxes even harder to avoid," Steve added.

In response to the growing anxiety, Steve has written a new guide, Where There’s A Will, There’s A Way, aimed at helping families navigate the complexities of inheritance tax, probate, and other related areas. The guide, which is set for release soon, also offers advice on protecting children, pets, and digital assets in the event of death.

Steve’s personal motivation for helping families with these difficult issues stems from a tragic experience over two decades ago. In 2001, his close friend Carl died unexpectedly in a scooter accident without leaving a Will. "Carl hadn’t made a Will, which left his family to grapple with the ‘Rules of Intestacy,’” Steve recalled. "I tried to help as best I could, but at the time, I felt powerless."

The painful experience led Steve to focus his career on helping others avoid similar situations. “This book is about making the overwhelming subject of inheritance tax more manageable," he said. “If it helps just one family avoid the distress I witnessed, it will have done its job.”

Ahead of the anticipated changes to inheritance tax, Steve has shared four crucial pieces of advice for families to keep ahead of the game:

1. Review and Update Your Plans: If the laws change, your existing plans may no longer be the most tax-efficient. Steve stresses the importance of reviewing your estate planning to ensure it remains as effective as possible for your heirs.
2. Maximise Current Gifting Allowances: These allowances, which allow individuals to gift money or assets tax-free, are under scrutiny by the government. Steve advises that people take advantage of them now before they potentially disappear with new legislation.
3. Consider Using Trusts: While trusts may not prevent your estate from being taxed initially, they can shield future generations from ‘generational inheritance tax.’ Steve emphasises that trusts aren’t just for the ultra-wealthy and can work for anyone wanting to protect their loved ones.
4. Seek Professional Advice: With the possibility of tighter rules on inheritance tax, Steve stresses the importance of consulting with an experienced estate planner or financial advisor who can help families navigate the changes and prevent costly mistakes.

Steve’s upcoming book Where There’s A Will, There’s A Way is aimed at those who have yet to create a Will, particularly parents, homeowners, and business owners. The guide simplifies complex estate planning topics and offers straightforward strategies for leaving behind a legacy without the added stress of complex tax issues.