With the Autumn Budget 2025 looming, it is anticipated that there will be some significant changes made to inheritance tax rules. Solicitors in Porthmadog and other areas of North Wales understand that changes are pending – though at this time, the details are not yet fully known.
One change that legal experts are confident will be announced this year is that some pensions and retirement savings may become liable for additional taxation in the future.
Other expected updates are those relating to the lifetime gifting allowance. This amendment will potentially reduce the limit – currently set at £3,000 per recipient – for tax free gifts to friends and family while the testator is still alive. The exemption period, which is the time when tax may be liable from the giving to the death of the giver, normally set at seven years, may be changed to 10 years. Taper relief, which applies to gifts up to seven years before the death of the testator, could potentially be removed all together.
Solicitors in North Wales also believe that these new changes will bring more people into the tax bracket on their estate. They are also likely to recommend that more careful estate planning will be necessary, including parents rethinking their intended gifts to children (such as house deposits) or upcoming retirees considering their new financial future.
Speak to us today at Bennett Smith Solicitors for advice on Will making and inheritance tax guidelines.
