26 November 2025
If you are covering the extended freeze on IHT thresholds and tax-free allowances to 2030-31, please see the following comment from Rachael Griffin, tax and financial planning expert at Quilter:
“The Chancellor has extended the freeze on inheritance tax thresholds for a further year to 2030-31, at which point the government will rake in a whopping £14.5 billion per year from grieving families.
“Inheritance tax is one of the UK’s most hated taxes. What was once a tax on only the wealthiest families will increasingly impact those with even relatively modest estates, who after a decade of frozen thresholds alongside rising house prices, will be snagged by the tax. Add to that the significant changes coming in April 2027, when pensions will be drawn into taxable estates, and the government looks set to cash in on an ever-expanding pool of taxpayers.
“Alongside the freeze on thresholds, inheritance tax free allowances have also been frozen until 2030-31. While they won’t be getting any more generous, maximising every available allowance will be vital for families looking to ensure they pass on as much of their wealth as possible, while leaving as little as possible in the hands of the taxman. Inheritance tax can be complex, so understanding how to manage your money in the most tax efficiently as possible will be key. Families must take action now to get ahead of the changes, and seeking professional financial advice wherever possible will be vital.”
