The Chancellor's Autumn Budget, delivered on 28 October 2026, has provided some important clarification on the Government's future tax direction, with several announcements that financial advisers, mortgage advisers and estate planners should be considering when reviewing their clients' financial and estate planning arrangements.

Whilst this year's Budget was relatively restrained in terms of major changes to Inheritance Tax (IHT), there are some important developments affecting pension death benefits, trust arrangements and the taxation of savings and property income.

Importantly, the Government has not reversed or delayed the previously announced changes to the IHT treatment of pensions from April 2027. These changes remain one of the most significant developments in estate planning and will require advisers to consider how their clients' wider financial arrangements fit together.

We have summarised the key announcements and, importantly, what advisers need to be aware of when supporting clients with their estate planning decisions.

1. Inheritance Tax: No major changes, but existing reforms remain important

One of the most notable aspects of this Budget is what the Chancellor did not announce.

There have been no new wholesale changes to the headline IHT rate or the existing nil-rate band and residence nil-rate band allowances.

The current thresholds remain:

• Nil-rate band: £325,000 per individual.
• Residence nil-rate band: Up to £175,000 per individual, subject to the qualifying conditions.
• Potential combined allowances: Up to £500,000 per individual, or £1 million for a qualifying married couple or civil partners, where the relevant transferable allowances are available.

The nil-rate band remains frozen until April 2031, whilst the residence nil-rate band remains at £175,000 until April 2030.

For advisers, the continued freeze means that increasing property values, investment growth and accumulated savings may continue to bring more clients within the scope of IHT.

The previously announced changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) also remain relevant. The Budget did not announce a reversal of the reforms already introduced in April 2026.

What does this mean for advisers?

There remains a strong need for regular estate planning reviews, particularly for clients with significant property wealth, business interests or investment portfolios.

Advisers should be considering whether existing Wills remain appropriate, whether trust planning could provide additional protection for beneficiaries and whether clients have reviewed their arrangements in light of the changing IHT landscape.

2. Pension reforms from April 2027: Still going ahead

Perhaps the most important message for estate planners is that the Government has confirmed that the previously announced changes to the IHT treatment of unused pension funds and pension death benefits will proceed as planned.

From 6 April 2027, most unused pension funds and pension death benefits will be brought within the value of an individual's estate for IHT purposes.

This is a significant departure from the previous position, where many pension arrangements, particularly those held within discretionary schemes, could generally pass outside the deceased's estate for IHT purposes.

The changes mean that pension wealth will need to be considered alongside property, savings, investments and other assets when assessing a client's potential IHT exposure.

There are also important administrative implications.

Under the new arrangements:

• Personal representatives will be responsible for reporting and paying any IHT attributable to relevant pension assets.
• Pension scheme administrators will be required to share relevant information with personal representatives.
• Personal representatives will be able to direct pension scheme administrators to pay IHT to HMRC in certain circumstances.
• IHT attributable to pension assets will generally be payable within the usual six-month period following the date of death.

The Budget has introduced some technical amendments to support the implementation of these changes, but it has not altered the fundamental position or delayed the April 2027 commencement date.

What does this mean for advisers?

Pensions can no longer automatically be viewed as separate from the wider estate planning conversation.

Advisers should be reviewing clients' pension values alongside their other assets, considering the potential impact on their IHT liability and ensuring that clients understand how their pension death benefit nominations and wider estate planning arrangements work together.

It is also an opportunity to revisit existing Wills and consider whether the distribution of the wider estate remains appropriate once pension assets are included in the IHT calculation.

3. Important pension death benefit clarification: The two-year rule

A welcome pension-related announcement concerns the removal of the two-year rule for certain pension and lump sum death benefits.

Previously, where a pension scheme administrator had not paid certain death benefits within two years of becoming aware of the member's death, benefits that might otherwise have been tax-free could become subject to Income Tax.

The Government has announced that this rule will be removed.

The change will apply to relevant payments made on or after 28 October 2026, meaning beneficiaries will no longer become liable to Income Tax solely because an otherwise qualifying payment has been delayed beyond the two-year period.

This is a welcome clarification for beneficiaries who may otherwise have faced an unexpected tax liability due to administrative delays.

It is important to distinguish this change from the April 2027 IHT reforms. Removing the two-year Income Tax rule does not mean pension death benefits will remain outside the deceased's estate for IHT purposes.

4. New rules affecting liabilities within trusts

Another announcement with particular relevance to estate planners concerns the treatment of liabilities within trust arrangements.

The Government is introducing changes to the IHT rules governing liabilities and trust property, aimed at preventing arrangements that artificially reduce the value of assets subject to IHT.

The legislation will clarify how properly incurred trustee liabilities are taken into account when valuing trust property. It will also extend restrictions and anti-avoidance provisions where liabilities are funded using value originating from a beneficiary's own estate.

These changes will apply to deaths and other chargeable events occurring on or after 28 October 2026.

The intention is to prevent certain arrangements from being used to create artificial IHT deductions whilst preserving the recognition of legitimate liabilities. Detail is currently somewhat lacking so one to watch.

What does this mean for estate planners?

Advisers and estate planners should be mindful of how liabilities are structured within trust arrangements and ensure that any planning involving borrowing, trust assets or beneficiary-funded liabilities is properly considered.

It is another reminder that trust planning needs to be supported by appropriate technical advice and careful consideration of the wider tax implications.

5. Increased taxation on savings and property income from April 2027

The Budget also announced increases to the Income Tax rates applying to savings and property income from 6 April 2027.

The new rates will be:

Tax band	Savings and property income
Basic rate	24%
Higher rate	44%
Additional rate	49%

These changes will be particularly relevant to clients who hold substantial cash savings or receive rental income from investment properties.

For estate planners, this is another consideration when reviewing how clients hold and manage their assets, particularly where property and investment income form a significant part of their retirement or wealth planning arrangements.

It also reinforces the importance of considering the interaction between lifetime tax planning and the longer-term distribution of wealth to beneficiaries.

How can advisers support clients following the Budget?

For financial advisers, mortgage advisers and professional estate planners, the Budget reinforces the importance of taking a joined-up approach to financial and estate planning.

Clients may have spent years building up pension funds, property portfolios, savings and business interests without necessarily considering how these assets will be treated on death or how they will ultimately pass to their chosen beneficiaries.

Now is an excellent opportunity to revisit those conversations.

Some key areas worth considering include:

1. Reviewing existing Wills

Do clients have a Will in place, and does it still reflect their wishes? Are the provisions appropriate for their current family circumstances, financial position and potential IHT exposure?

2. Considering appropriate Will trusts

For clients with property wealth, blended families or concerns about protecting inherited assets, appropriate Will trust provisions may provide greater control over how assets are distributed and managed.

Options may include Flexible Life Interest Trusts, Property Protective Trusts, Nil Rate Band Discretionary Trusts and other appropriately structured arrangements, depending on individual circumstances.

3. Reviewing pension and estate planning together

With pension assets becoming relevant for IHT purposes from April 2027, clients should understand how their pension arrangements interact with their wider estate and succession planning.

4. Ensuring LPAs are in place

Estate planning is not just about what happens when someone dies. Lasting Powers of Attorney (LPAs) remain an essential part of a client's financial and personal planning, providing for circumstances where they may lose the capacity to make decisions themselves.

5. Reviewing business and family succession arrangements

Business owners and families with significant assets should consider whether their existing Wills, trusts and wider succession arrangements remain appropriate in light of the evolving tax position.

How BTWC can support professional advisers

At Beneficial Trust & Will, we work alongside financial advisers, mortgage advisers and professional estate planners to help them deliver a more comprehensive estate planning service to their clients.

We understand that the changing tax landscape can create uncertainty, but it also provides an opportunity for advisers to engage with clients and ensure that their wider financial and estate planning arrangements remain appropriate.

We can support you and your clients with:

• Professionally drafted Wills and specialist Will trust provisions.
• Flexible Life Interest Trusts and Property Protective Trusts.
• Nil Rate Band Discretionary Trusts and other IHT-related Will trusts.
• Lasting Powers of Attorney for Property and Financial Affairs and Health and Welfare.
• Business Wills and business succession planning documentation.
• Probate assistance and estate administration support.

We also provide ongoing technical support, training and resources to help professional advisers develop their knowledge and confidence in estate planning.

The Budget may not have introduced sweeping new IHT changes, but the changes already on the horizon make it more important than ever for clients to have the right estate planning arrangements in place.

If you are a financial adviser, mortgage adviser or estate planner looking to strengthen the estate planning support you offer your clients, speak to the team at Beneficial Trust & Will Co.

Let's work together to help your clients protect their assets, plan for the future and ensure their wishes are properly documented.

Visit www.btwc.co.uk to find out more about working with us.

Published 02/11/2026. Please note this article should not be considered as financial advice or tax advice and is written as general guidance only based on our understanding of current rules.