The Intermediary – August 2025 - Flipbook - Page 66
P RO T E C T I O N
Opinion
rotection has gained
significant aention
following the proposed
Inheritance Tax (IHT)
regulation changes
in last year’s Budget.
Clients are placing greater emphasis
on safeguarding their financial legacy
and, as a result, IHT planning has seen
a shi from a specialist area to a core
element of protection advice.
Frozen thresholds, tightening
reliefs and a more assertive HMRC
P
mean more estates than ever risk an
IHT bill. At the same time, clients’
ability to absorb a sudden tax hit is
questionable.
Royal London’s financial resilience
report found that 28% of mid-lifers –
aged 30 to 49 – could cope financially
for just one month if they were unable
to work due to illness, and 37% have
less than £1,000 in savings. This
fragility exists even among higher
earners, those most likely to face
an IHT bill.
With pensions
set to be included
within IHT
calculations,
it’s likely that
the protection
landscape will look
very different in 12
months’ time”
