Wbg, one of Scotland’s leading independent specialist full-service accountancy firms, has advised families to seek professional advice as many of them are likely to be unaware their estate could be liable for Inheritance Tax (IHT) given the increasing complexity of the system.

HMRC recently revealed that IHT receipts reached a record £8.2bn in the 2024-25 tax year, up from £7.5bn previously, an increase driven largely by rising property and asset values combined with frozen tax thresholds, which are dragging more estates into the IHT net.

While the main £325,000 nil-rate band has remained unchanged since 2009, the additional £175,000 residence nil-rate band, introduced in 2017, is also static. Both will remain frozen until at least 2030.

Around 4% of UK deaths currently trigger an IHT liability, often driven by property values which constitute 38% of the average taxpaying estate.

The Government’s Office for Budget Responsibility forecasts IHT receipts will rise to £13.9bn by 2030 with future revenue bolstered by upcoming changes.

From April 2026, business property relief and agricultural property relief will be capped at £1 million (with sums above taxed at 20%), and from 2027, it is expected that pension pots will become liable for IHT.

In the light of these changes, Gavin Brown, senior tax manager at Wbg, advises families to get a proper valuation of the total assets in their estate.

“When working with families, we often find that individuals do not fully appreciate their total net worth. Between increasing property values, and pension funds due to come within the scope of IHT, more and more individuals are finding themselves with IHT exposure.

“Establishing the value of your estate is essential to gain an understanding of your estimated IHT liability. The level of exposure, coupled with your personal view on IHT, will be the foundations for providing tailored advice.

“There are various prudent steps that can be taken to mitigate IHT that do not require taking on anything too onerous. There are further options available for those who wish to minimise or eliminate their IHT liability entirely,” he said.

“A professional advisor can help you gain a better understanding of your situation, make you aware of the various options available to you and advise you on those options most appropriate to your situation.”

Brown further advises families to ensure that their wills are up to date to ensure that their assets end up where they want them, by taking advice from a regulated solicitor.

ENDS

For further information please contact Gavin Brown on 0141 566 7000

Issued on behalf of Wbg by Liquorice Media tel 0141 332 4935 www.liquorice-media.com

Date: 5 May25