By Emma Howlett, Partner at Thomas Mansfield Solicitors
For many people across Tunbridge Wells and West Kent, their home, savings and pension are their most valuable assets. Having a clear plan for how these will be passed on can help protect their wishes and give family peace of mind.
The Budget on 28 October left inheritance tax rates and thresholds unchanged, despite weeks of speculation. But with pensions coming into the inheritance tax net in April 2027, it is a timely reminder to check that your affairs are in order.
From 6 April 2027, most unused pension funds will be included when calculating inheritance tax. This was already confirmed in the Finance Act 2026, and pensions left to a spouse or civil partner remain exempt. Pensions have often been seen as a tax-efficient way to pass money to the next generation, so this change could affect how families plan for the future.
Inheritance tax thresholds also remain frozen. The standard allowance has been £325,000 since 2009 and will stay at that level until April 2031. An additional residence allowance of up to £175,000 is available where the family home passes to children or grandchildren, but it is gradually withdrawn from estates worth more than £2 million. With property prices across West Kent, these limits can be reached more easily than people expect.
There was no further change to tax relief for agricultural and business assets. But for those planning to pass on a business or farmland, the restrictions introduced in April 2026 mean existing arrangements may need reviewing.
The Budget also raised tax on savings and property income by a further two percentage points from April 2027, on top of the increase announced last year. Anyone holding rental property or significant savings in their own name should factor this into their plans.
My advice is straightforward: review your will, lasting powers of attorney and pension beneficiary nominations together. These arrangements need to work alongside one another. A will written years ago may no longer reflect your circumstances, particularly if you have remarried, bought or sold property, or your family has grown.
Estate planning is about more than tax. Without a valid will, the law decides who inherits your estate, which may not reflect your wishes. An outdated or unclear will can also lead to delays, extra costs and disagreements for your family.
Taking advice now makes things clearer for the people closest to you. A little planning can ensure your wishes are followed and give your family confidence about the future.
www.tmwillsandprobate.co.uk
