Following months of uncertainty, the Private Client Team at Swinburne Maddison is now well-prepared to assist clients in reviewing their estate planning following the updates announced in the Autumn Budget on 30th October 2024.
The Government has introduced legislation for the 2024-2025 fiscal year to extend the freeze on the Nil Rate Band and Residence Nil Rate Band at their current levels until 5th April 2030. This means the Nil Rate Band Allowance will remain at £325,000, and the Residence Nil Rate Band Allowance will stay at £175,000, continuing the previous freeze set until 5th April 2028.
In practical terms, this means that qualifying estates can continue to pass on up to £500,000 free of Inheritance Tax, while a qualifying estate of a surviving spouse or civil partner can pass on up to £1 million without incurring any Inheritance Tax liability.
However, significant changes are on the horizon for business owners and farmers. Relief rates on business and agricultural assets are set to adjust, with assets exceeding £1 million subject to a 20% tax rate. To make the most of potential planning opportunities, we recommend clients review their estate plans well before the 2026 deadline.
Additionally, from 6th April 2027, unused pension funds and death benefits from a pension will be included in a person’s estate for Inheritance Tax purposes.
Given these changes, we strongly advise reviewing your estate planning strategies, which may impact Will drafting and Trust administration.
For support, please contact Anna Stephenson, Partner and Head of the Private Client Team, at aes@swinburnemaddison.co.uk, or speak to a member of our Private Clients Team on 0191 384 2441.
