Autumn Budget 2026: What does it mean for inheritance and estate planning?

Mary McCutchan, Associate Solicitor in WSP’s Private Client team, says the Budget provides limited additional certainty for people making decisions around pensions, inheritance tax and estate planning.

One area of particular concern is the forthcoming change to the inheritance tax treatment of pensions. The planned change bringing most unused pension funds into estates for inheritance tax purposes from 6 April 2027 remains in place.

Mary said: “Many clients have spent decades saving into pension schemes on the understanding that these funds would provide a tax-efficient way of passing wealth to future generations. While the direction of travel is now clear, considerable uncertainty remains around how these changes will work in practice.”

Inheritance tax thresholds are another concern. Mary believes frozen thresholds, combined with increasing asset and property values, mean inheritance tax is becoming relevant to more families.

“For many families, the most disappointing aspect of the Budget was the lack of movement on inheritance tax thresholds,” she said. “As assets continue to rise in value, more people are being drawn into the inheritance tax system.”

For those with farming or business assets, Agricultural Property Relief and Business Property Relief also remain important areas to consider when looking at succession and longer-term estate planning.

Mary’s advice is not to make rushed decisions in response to headlines, but to understand how the evolving rules could affect your own circumstances.

“What our clients wanted from this Budget was confidence and certainty,” she said. “At this stage, clients and advisers need to focus on planning within the new framework.”

With further changes approaching, now is a sensible time to review existing wills, inheritance tax planning and arrangements for passing wealth to the next generation.

WSP Solicitors’ Private Client team advises individuals and families on wills, trusts, probate, inheritance tax and estate planning.

You can get in touch with our Private Client team using the form on this page or by clicking here. Alternatively you can call us on 01453 847200.