HMRC April 2027 new tax 'already having impact' says Belfast financial adviser

A financial adviser says enquiries about inheritance tax planning have risen by around 50% as more families seek advice ahead of a ‘stealth tax’ coming next year. From April 2027, unused pension pots will no longer automatically sit outside an individual’s estate for inheritance tax purposes, meaning families with substantial pension savings could face significantly larger tax bills. David Stirling, an Independent Financial Adviser at Belfast-based Mint Wealth, said the changes were already having a noticeable impact on his business, particularly among clients in their late 60s and 70s who had spent decades building up pension savings. He noted a 50% increase in enquiries about inheritance tax planning over the past year as awareness of the reforms grew. Stirling explained, ‘We’ve definitely seen at least a 50% increase in people talking to us about inheritance tax planning. It’s become a much bigger part of the business, especially among clients over 70 who have built up a good amount of wealth.’ Stirling believes many people still underestimate the significance of these changes. He said, ‘It’s a bit of a stealth tax. People have spent their working lives paying into pensions, believing that money could be passed on tax-efficiently. Now they’re having to rethink those plans.’ Under the planned reforms, pensions will no longer automatically escape inheritance tax, potentially leading families with large pension savings to face unexpected tax bills. Stirling advises clients to seek advice years before they expect to need it. He noted, ‘We’re encouraging people not to leave it until the last minute. If you’re looking at certain types of inheritance tax planning, such as placing money into trust, the seven-year rule means you need to start thinking about it well in advance.’ He recently advised a couple with several million pounds in assets who restructured their finances to draw pension income and move investments into more tax-efficient structures as part of a long-term estate plan. Despite dealing with increasingly affluent clients, Stirling said the concerns were often the same. He emphasized, ‘Whether someone has £500,000 or several million pounds, they usually just want straightforward advice they can understand. People don’t want jargon; they want someone to explain what the changes mean for their family.’ While the reforms are likely to affect wealthier households the most, Stirling believes many homeowners, particularly in higher-value parts of the UK, could be caught off guard as rising property values combine with pension savings to push estates above inheritance tax thresholds. His advice is simple: ‘Don’t wait until next spring to start asking questions. These aren’t decisions you want to rush. The earlier people understand their options, the more choices they’re likely to have.’