From 2026, inheritance tax reforms could reshape succession planning for business owners and wealthy families. Assets once thought protected now face a dramatic tax liability – in some cases, more than triple. With the right planning, you can safeguard your legacy. But you need to act fast.
Why this matters
From April 2026, only the first £1 million of business assets will qualify for Business Relief. A year later, from April 2027, pensions will also become subject to inheritance tax.
Even if your estate stays the same, the liability can rise sharply – in some cases from £1.39 million to over £4.2 million – purely because of legislation, not lifestyle.
The danger isn’t just the rising tax bill. It’s that much of this wealth is held in illiquid assets: businesses, property, or investments that can’t be sold quickly. That can leave loved ones facing impossible choices – like selling part of a business or family home simply to pay a tax bill.
The good news? There are steps you can take now to create liquidity, flexibility, and control, so your legacy passes on your terms.
What’s changing (and when):
In this short video, Robert Caplan outlines how First Wealth Private Office is helping clients take control through clear, evidence-led planning that delivers confidence, peace of mind, and a legacy that lasts.
Sometimes the clearest way to understand the problem is to see it. The danger isn’t only the tax bill. It’s the illiquid nature of the wealth – how do heirs pay a £4 million liability when the assets are locked inside the business?
The solution:
The biggest challenge in inheritance-tax planning isn’t wealth, it’s liquidity. The tax bill arrives in cash, but most estates are tied up in businesses, property, or pensions that can’t easily be accessed.
The first step is to create immediate liquidity. A tailored life-insurance policy can provide the cash your estate needs to pay future inheritance-tax liabilities – instantly, and at a fraction of the exposure.
It’s not a product sale; it’s a planning tool. It buys time, control, and flexibility – ensuring your family can pay the tax bill without selling the assets you worked so hard to build.
Once that liquidity is secured, we work with you (and your advisers) to build a long-term strategy – from Family Investment Companies, trusts, and succession structures, to pension reviews and next-generation planning.
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“First Wealth have provided us with both professional tax advice for our business and personal financial advice regarding estate and legacy planning. Their recommendations have been focused, well-thought-out, and clearly explained.”
At the Private Office, we make complex planning simple. Our team manages everything – coordinating with your accountants, lawyers, and trustees – to deliver a joined-up outcome that protects your wealth and reduces stress.
You’ll have:
The earlier you act, the more options you have. Planning ahead means protecting your family from unnecessary pressure – and keeping control of how your wealth is passed on.
Book an initial call with our Private Office team – let’s make sure your legacy passes on your terms.
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