Inheritance tax: A simple document could save you thousands…

Britons warned that neglecting a certain document can often leave them paying thousands of pounds more in inheritance tax.

The warning comes as HMRC have released their latest inheritance tax receipts showing £7billion was collected in the first 10 months of the 2024/25 financial year.

Experts caution that failing to create a Will could result in serious financial implications for families, especially as inheritance tax receipts keep increasing.

Over half of UK adults have not written a will, according to research from Canada Life. This includes 13% who state they have no intention to write one in the future.

A will can include specific provisions to help minimise tax liabilities. By incorporating tax-efficient strategies into one's estate planning, they can safeguard their assets for future generations and prevent unnecessary stress and even disputes for the administrators and beneficiaries of an estate. This could save them having to pay unnecessary inheritance bills.

MRC data shows inheritance tax receipts reached £7bn in the first 10 months of 2024/25. This represents an 11 % increase on the £6.3bn collected during the same period the previous year. January 2025 alone saw £639million in receipts, up 15 % from January 2024.

The Office for Budget Responsibility predicts that approximately one in ten deaths will incur inheritance tax by 2029-30. This is double the proportion seen in 2023-24, meaning significantly more estates will face inheritance tax liabilities within a decade.

Changes to inheritance tax rules starting in 2027 will affect more families. For the first time, defined contribution pension pots will be included in estates' inheritance tax liabilities.

The Chancellor has also extended the freeze on nil rate bands until April 2030.

From April 2026, changes to business and agricultural property relief will impact estate planning.

The first £1m of combined business and agricultural assets can still be passed on tax-free, but any amount above this threshold will be taxed at 20 per cent.

We would encourage people to regularly assess the value of their estate, including up-to-date property valuations. "Estate planning can be complex, and seeking professional advice can help individuals navigate the rules, mitigate potential liabilities, and ensure they pass on as much wealth as possible.

Contact us today to arrange a free appointment in the comfort of your own home, don't leave your family's future to chance.