Advisers are experiencing a surge in enquiries about inheritance tax (IHT) ahead of the Budget, according to investment manager Downing, as demand for support on estate planning continues to expand.
In Downing’s survey of UK financial advisers and wealth managers, 92% reported a rise in enquiries about IHT in the run-up to the Budget on 26 November, including 12% who are reporting a substantial increase.
IHT raised a record £8.25bn for the Government in the last tax year, and the Office for Budget Responsibility has estimated that IHT receipts will rise to another record of £9.1bn in 2025/26, before hitting £14.3bn in the 2029/30 tax year.
Downing said that 38% of advisers it questioned believe the increase in enquiries is mainly being driven by new clients, with 27% suggesting it is coming mainly from existing clients, and 35% saying it is a mix of new and existing clients.
“Growth in client enquiries about IHT planning solutions has increased materially since the last Budget introduced significant changes, and advisers and wealth managers are seeing a rapid rise in interest,” said head of retail sales at Downing, Mark Dunn.
“It is understandable that enquiries are growing in the run-up to the 26 November, as more and more people are being caught within the IHT net due to frozen nil rate bands and the proposed pension reforms.
“It is interesting to see how important IHT planning solutions and advice are to adviser businesses. This underlines the need for more solutions to meet the needs of clients, many of whom are now looking for growth in business relief investments.”
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