On-Demand Events
Inheritance Tax planning in a post budget world
17 Apr 25 3 min read
Over the last few years the tax landscape has been tightening with the freezing of the rates bands and allowances, cuts to the dividend allowance and CGT allowance along with CGT rate increases. It was perhaps inevitable that changes to Inheritance Tax would emerge and they did so in the last budget with changes to agricultural/business relief and plans to bring pensions into the IHT net.
Les Cameron (Head of Technical, M&G)
He takes a takes a look at the new IHT landscape and the key options for mitigating a liability - gifting or relief. Or both?
Up to 90 minutes including around 30 minutes Q&A I Structured CPD accredited by CII and CISI
Learning outcomes
By the end of this session, you will be able to:
- Assess the impact of the IHT changes in the 2024 Autumn Budget on your clients’ financial planning
- Describe the fundamental elements of an IHT plan
- Describe the different treatment of reliefs and gifting for IHT planning
- Evaluate the pros and cons of using gifting and reliefs in IHT planning
To claim your CPD certificate, test your knowledge with the questions below.
Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below
1. Which of the following is not included in an individual’s estate in determining whether the taper will reduce entitlement to the residence nil rate band?
A. AIM ISA held for more than 2 years
B. A non-exempt gift made in the 7 years before death
C. A gift left to a spouse in a Will
D. Shares in a Venture Capital Trust (VCT) held for more than 2 years
2. Andrew dies in May 2026 holding £2m of AIM shares. The shares qualify for business relief on his death and he has held them for more than 2 years. How much business relief will apply to the holding if everything is left to Andrew’s son in his Will?
A. The entire holding qualifies for 100% relief
B. Business relief will not apply to any of the holding as AIM shares will no longer qualify for relief from 6th April 2026
C. The first £1m will attract 100% relief with the remainder qualifying for 50% relief
D. The entire holding will qualify for 50% relief
3. Which of the following is not a benefit of using a whole of life policy as part of an IHT planning strategy?
A. Access to estate assets can be retained
B. The whole of life policy will potentially reduce the estate’s IHT liability to nil on death
C. By holding the policy in trust the proceeds can be paid out to the beneficiaries prior to obtaining probate
D. Where the policy is held in a discretionary trust, providing the premiums are covered by a gifting exemption, the premiums will not attract an entry charge
1. Which of the following is not included in an individual’s estate in determining whether the taper will reduce entitlement to the residence nil rate band?
A. AIM ISA held for more than 2 years
B. A non-exempt gift made in the 7 years before death
C. A gift left to a spouse in a Will
D. Shares in a Venture Capital Trust (VCT) held for more than 2 years
2. Andrew dies in May 2026 holding £2m of AIM shares. The shares qualify for business relief on his death and he has held them for more than 2 years. How much business relief will apply to the holding if everything is left to Andrew’s son in his Will?
A. The entire holding qualifies for 100% relief
B. Business relief will not apply to any of the holding as AIM shares will no longer qualify for relief from 6th April 2026
C. The first £1m will attract 100% relief with the remainder qualifying for 50% relief
D. The entire holding will qualify for 50% relief
3. Which of the following is not a benefit of using a whole of life policy as part of an IHT planning strategy?
A. Access to estate assets can be retained
B. The whole of life policy will potentially reduce the estate’s IHT liability to nil on death
C. By holding the policy in trust the proceeds can be paid out to the beneficiaries prior to obtaining probate
D. Where the policy is held in a discretionary trust, providing the premiums are covered by a gifting exemption, the premiums will not attract an entry charge
Before collecting your certificate, please take a moment to provide us feedback on this session, please email prudential.distribution.team@prudential.co.uk
Complete the form below and we’ll email your CPD confirmation to you. Please use the email address that you would usually use when contacting us.
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