Inheritance Tax Changes after the 2024 Budget
Recorded March 2025 · Episode 2 · 6:30
Update note (June 2026): Two things have moved since this episode was recorded. The residence-based system that replaced domicile is now in force, having taken effect on 6 April 2025. More significantly, the agricultural and business property relief reforms have twice been softened: the £1 million allowance for 100% relief described here has been raised to £2.5 million and confirmed as transferable between spouses and civil partners, giving a married couple up to £5 million. Value above the allowance attracts 50% relief, an effective 20% charge, and AIM and other unlisted shares fall from 100% to 50%. The allowance is fixed until 2030/31 and indexed to CPI thereafter. The changes are being legislated through the Finance Bill 2025–26, and the measure bringing unused pension funds within the IHT net remains on track for 6 April 2027. Check the detail against the enacted Finance Act before relying on it.
In this episode I work through the inheritance tax measures announced in the Autumn 2024 Budget — the most far-reaching set of IHT changes in a generation. I look at the replacement of domicile with a residence-based test, the restriction of agricultural and business property relief, the reduction of relief available on AIM shares, and the proposal to bring unused pension funds within the scope of inheritance tax, together with what all of this means for estate planning and the conversations advisers should be having with clients now.
This podcast is not a substitute for professional advice.