Financial advisers are turning away from pension wrappers and instead utilising pension gifting, annuities and onshore bonds as they prepare for the upcoming changes to inheritance tax, according to a new report.

Two in three (63%) of Financial Planners have encountered family disputes whilst advising on estate planning, according to a new report.

Just 2% of estates have made gifts out of surplus income under inheritance tax rules to minimise their tax burden in the past three years, according to new data.

Inheritance tax receipts for the period April 2024 to March 2025 were £8.2bn, a rise of £0.8bn compared to the same period last year and a new record.

Over nine in ten (93%) of Financial Planners are working with lawyers or accountants for additional expertise on inheritance tax (IHT) planning, according to a new report.

In this regular column for Financial Planning Today, new columnist Carly Dunningham, chair of the CISI's Financial Planning Forum, looks at the 'calming' role Financial Planners can play in clients' lives amid a seeming sea of chaos. You can read this article and more top content in the latest issue of Financial Planning Today magazine.

In an increasingly uncertain world, I believe as Financial Planners we can play a vital role in keeping clients calm and focused on long-term goals.

With global tensions rising and political shifts creating instability - such as Donald Trump’s influence on international affairs and fears of escalating conflict - many clients feel anxious about their financial security.

Closer to home, the UK government’s recent announcement that pensions may fall under inheritance tax (IHT) from 2027 has sparked concerns, leading some to consider drastic actions like large pension withdrawals to gift money now.

At times like these, our role as planners is more important than ever. Clients look to us for reassurance, guidance, and a steady hand. Rash decisions made in fear can have long-term consequences.

Premature pension withdrawals, for example, could lead to unnecessary tax liabilities, loss of compound growth and reduced retirement income. Making decisions based on short-term headlines rather than strategic Financial Planning can be costly.

Instead of reacting impulsively, clients should be encouraged to take a measured approach. Education is key - helping them understand that policy changes may take years to come into effect and could even be reversed by a future government. 

By maintaining clear, open communication and reinforcing the principles of long-term planning, we can help clients make informed choices rather than emotional ones. Our job is not just about managing money - it’s about managing emotions and providing clarity in a world that often feels chaotic.

Now, more than ever, Financial Planners must be the voice of reason.

Carly Dunningham is a Chartered and Certified Financial Planner. She is the new Chair of the CISI Financial Planning Forum and a voice for the profession.

https://www.cisi.org

• This column first appeared in Financial Planning Today magazine, Mar-Apr 2025 edition. Carly's column appears in each issue of the magazine. You can subscribe to the magazine by registering for this website and then checking package options.

More than nine in 10 Financial Planners (94%) have reported a rise in demand for IHT planning advice since the October Budget, according to a new report.

The government’s inheritance tax take continues to rise rapidly and is up £800m on last year to £7.6bn, according to latest government data out today.

Over seven in ten financial advisers (71%) are worried about the impact of pensions becoming liable for inheritance tax (IHT) from 2027, according to new research.

There’s overwhelming opposition to the proposed introduction of IHT on unused pensions, according to a new survey conducted by SSAS provider WBR Group.

IHT receipts for the government in January leapt to £639m, up 15% on the £556m received in January 2024, according to new HMRC figures published today.

Proposals for softening the Budget crackdown on non-dom individuals have failed to reverse the wave of departures of wealthy people from the UK, according to a new report.

Inheritance Tax (IHT) receipts rose £0.6bn (year on year) to £6.3bn for the period April to December 2024, according to the latest data from HMRC.

Changes to the treatment of pensions under new inheritance tax rules - due to take effect from 2027 - will exacerbate delays in probate cases, wealth manager and Financial Planner Quilter has warned.

Mutual provider and insurer Royal London has launched a joint life second death life cover option to help clients with their estate planning and inheritance tax mitigation.

Inheritance tax (IHT) receipts are on course to be around 40% higher than three years ago following the first seven months of official data for the current tax year.

Over one in five (21%) of mass affluent Britons lack confidence that their inheritance planning is in order, according to a new survey.

Financial Planning fintech EV Financial Solutions has added inheritance tax functionality to its end-to-end Financial Planning solution EVPro.

The proportion of deaths subject to Inheritance Tax (IHT) could nearly double from 5.1% to 9.5% by the end of the decade after the Budget changes, Office of Budget Responsibility (OBR) figures appear to suggest.

A former Pensions Minister and retirement expert has attacked the government’s Budget day decision to include pensions and pension death benefits within estates for inheritance tax (IHT) purposes.