New investment account and inheritance tax changes reshape wealth planning

The Budget includes positive developments for families and those engaged in succession planning, but the reality is that continued inflation will erode a substantial portion of the benefits from the changes to inheritance tax. The thresholds have increased modestly across all categories which will  provide additional scope for tax-efficient transfers of wealth, but the continued growth in asset values does mean inheritance tax will remain a headache for many families.

The removal of CGT, dividend withholding tax and deemed disposal considerations within the account should make long-term investing considerably more attractive for many individuals currently holding significant cash deposits.

Overall, Budget 2027 increases disposable income for working households and introduces meaningful reforms to the taxation of savings and investments. From a private client perspective, the investment and wealth planning measures are among the most significant changes announced in recent years, but current rates of inflation will lessen their benefit.