Families across the UK and expats with overseas assets in Britain should be taking immediate steps to mitigate the potential impact of an expected inheritance tax raid at the Budget next month, warns the CEO of one of the world’s largest independent financial advisory organisations.
The stark warning from deVere Group’s Nigel Green comes ahead of Labour’s first Budget in power and amid increasing speculation that Chancellor Rachel Reeves will make significant changes to inheritance tax (IHT).
He warned, “The upcoming budget is widely expected to include significant hikes in inheritance tax, capital gains tax, and pension taxes – and the consequences could be devastating for many.
“We’ve seen an overwhelming surge in enquiries from clients, both existing and new, seeking urgent advice on how to protect their wealth before Chancellor Rachel Reeves delivers what is expected to be a painful financial blow next month.”
IHT is squarely in Labour’s crosshairs as they seek quick-fix revenue streams to rebalance the nation’s finances.
“But the truth is that these plans will unfairly punish families who have worked hard to build their estates. With soaring property values pulling more and more ordinary families into the IHT net, this isn’t a tax just for the ultra-rich anymore,” says Nigel Green.
Currently, IHT kicks in on estates over £325,000 with a hefty 40% tax rate applied to anything above that threshold. Labour’s potential moves to raise this rate, lower the threshold, or eliminate key exemptions are a direct threat to middle-class families – not just wealthy elites.
“Those who have their wealth tied up in the family home, without access to the complex tax-saving strategies used by the ultra-rich, stand to lose the most.”
In the lead-up to October’s budget, deVere says “there’s genuine panic” amid a surge in enquiries from families eager to protect their estates.
The message is clear: families must act now to safeguard their financial legacy. Failing to act could result in families being hit with hefty tax bills that they could have avoided with proper planning.
The deVere CEO said, “The frenzy of enquiries is only going to increase as the budget draws nearer.
“Don’t wait until it’s too late. By acting now, families can take advantage of the current rules, ensuring they keep control over their wealth and avoid the damaging effects of Labour’s likely tax reforms.”
Timely estate planning is critical, and there are legal, strategic steps that can be taken to reduce the IHT burden.
These strategies include utilizing trusts, making use of lifetime gifting, and maximizing allowances under the current IHT rules before Labour pulls the rug from under families across the country.
“The clock is ticking on Labour’s widely expected Inheritance Tax raid in next month’s Budget,” concludes Nigel Green.
