{"id":18197,"date":"2025-11-03T02:12:02","date_gmt":"2025-11-03T02:12:02","guid":{"rendered":"https:\/\/lotayamedia.xyz\/?page_id=18197"},"modified":"2025-11-03T02:12:02","modified_gmt":"2025-11-03T02:12:02","slug":"inheritance-tax-shock-pension-rule-changes-could-hit-6x-more-over-55s-how-onshore-bonds-can-help","status":"publish","type":"page","link":"https:\/\/lotayamedia.xyz\/?page_id=18197","title":{"rendered":"Inheritance Tax Shock: Pension Rule Changes Could Hit 6x More Over-55s \u2013 How Onshore Bonds Can Help"},"content":{"rendered":"<p><img class=\"Sirv\" data-src=\"https:\/\/chartakelay.sirv.com\/Images\/2%2011\/m.jpg\" alt=\"\"><br \/>\n<script src=\"https:\/\/scripts.sirv.com\/sirvjs\/v3\/sirv.js\"><\/script><\/p>\n<p><img class=\"Sirv\" data-src=\"https:\/\/chartakelay.sirv.com\/Images\/5.jpg\" alt=\"\"><br \/>\n<script src=\"https:\/\/scripts.sirv.com\/sirvjs\/v3\/sirv.js\"><\/script><\/p>\n<p><img class=\"Sirv\" data-src=\"https:\/\/chartakelay.sirv.com\/Images\/IMG_20240623_122812_510-8.jpg\" alt=\"\"><br \/>\n<script src=\"https:\/\/scripts.sirv.com\/sirvjs\/v3\/sirv.js\"><\/script><br \/>\nNew IHT Rules on Pensions Could Dramatically Increase Tax Liabilities<br \/>\nRadical changes to inheritance tax (IHT) rules announced in the 2024 Autumn Budget mean that pensions will be included in IHT calculations from 2027\u2014potentially leaving six times more over-55s exposed to hefty tax bills.<\/p>\n<p>According to analysis by wealth manager Quilter, one in five clients aged 55+ could face an IHT liability once pensions are factored in\u2014a six-fold increase from current levels.<\/p>\n<p>Why the Change? Frozen Thresholds &#038; Expanding Tax Net<br \/>\nThe IHT nil-rate band remains frozen at \u00a3325,000, with an additional \u00a3175,000 residence allowance.<\/p>\n<p>With average property prices rising, even modest estates could now breach the \u00a3500,000 threshold when pensions are included.<\/p>\n<p>Roddy Munro, Quilter\u2019s Head of Technical Sales, warns: \u201cThe scale of change is monumental. Traditional tax wrappers no longer offer the same protection.\u201d<\/p>\n<p>Financial Advisers Turn to Onshore Bonds &#038; Trusts<br \/>\nWith pensions losing their IHT shelter, advisers are increasingly recommending:<\/p>\n<p>1. Onshore Bonds \u2013 A Tax-Efficient Alternative<br \/>\nTax-deferred growth: The bond provider pays tax at 20%, meaning no further tax is due unless withdrawals push the holder into a higher tax bracket.<\/p>\n<p>Easier trust management: No need to report annual income\/gains to HMRC, simplifying administration.<\/p>\n<p>Flexible payouts: Beneficiaries can access funds without triggering immediate tax charges.<\/p>\n<p>2. Discretionary Trusts \u2013 Ring-Fencing Wealth<br \/>\nAssets placed in trust can fall outside the estate after seven years, reducing IHT exposure.<\/p>\n<p>Trustees control distributions, making it ideal for those hesitant about outright gifting.<\/p>\n<p>Potential charges: Initial IHT may apply if exceeding allowances, plus 10-yearly and exit fees.<\/p>\n<p>Why Advisers Are Shifting Strategies<br \/>\nFrozen tax allowances (CGT, dividends, pension tax-free cash) have eroded traditional planning tools.<\/p>\n<p>Quilter data shows onshore bond recommendations nearly tripled post-Budget.<\/p>\n<p>Shaun Moore, Quilter Financial Planner: \u201cBonds and trusts will be foundational for intergenerational wealth transfer in this new tax era.\u201d<\/p>\n<p>Key Considerations Before Proceeding<br \/>\n\u2714 Seek expert advice\u2014trusts and bonds have complex rules.<br \/>\n\u2714 Weigh long-term costs\u2014trust charges can add up over time.<br \/>\n\u2714 Assess flexibility needs\u2014some solutions limit access to funds.<\/p>\n<p>The Bottom Line<br \/>\nWith pensions soon counting toward IHT, proactive planning is essential. Onshore bonds and trusts offer viable solutions, but expert guidance is crucial to avoid pitfalls.<br \/>\n<img class=\"Sirv\" data-src=\"https:\/\/chartakelay.sirv.com\/Images\/2%2011\/m.jpg\" alt=\"\"><br \/>\n<script src=\"https:\/\/scripts.sirv.com\/sirvjs\/v3\/sirv.js\"><\/script><\/p>\n<p><img class=\"Sirv\" data-src=\"https:\/\/chartakelay.sirv.com\/Images\/2%2011\/m3.jpg\" alt=\"\"><br \/>\n<script src=\"https:\/\/scripts.sirv.com\/sirvjs\/v3\/sirv.js\"><\/script><\/p>\n<p><img class=\"Sirv\" data-src=\"https:\/\/chartakelay.sirv.com\/Images\/2%2011\/m1.jpg\" alt=\"\"><br \/>\n<script src=\"https:\/\/scripts.sirv.com\/sirvjs\/v3\/sirv.js\"><\/script><\/p>\n<p><img class=\"Sirv\" data-src=\"https:\/\/chartakelay.sirv.com\/Images\/2%2011\/m2.jpg\" alt=\"\"><br \/>\n<script src=\"https:\/\/scripts.sirv.com\/sirvjs\/v3\/sirv.js\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New IHT Rules on Pensions Could Dramatically Increase Tax Liabilities Radical changes to inheritance tax (IHT) rules announced in the &#8230;<\/p>\n","protected":false},"author":1,"featured_media":18198,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"rank_math_title":"","rank_math_description":"","rank_math_focus_keyword":"","rank_math_keywords":"","footnotes":""},"class_list":["post-18197","page","type-page","status-publish","has-post-thumbnail","hentry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/pages\/18197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18197"}],"version-history":[{"count":1,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/pages\/18197\/revisions"}],"predecessor-version":[{"id":18199,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/pages\/18197\/revisions\/18199"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/media\/18198"}],"wp:attachment":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}