A new survey1 from RBC Brewin Dolphin found that over half (62%) of affluent individuals are concerned about upcoming changes to Inheritance Tax (IHT), and just under a third (30%) are already changing how they are gifting in light of the upcoming changes.
The survey, which canvassed the views of 1,000 UK individuals with either a personal income of over £100k, investable assets of over £500k, or a house valued more than £1 million, comes ahead of changes due to take effect next year, on 6 April 2027. These changes will bring unused pension pots, and a wider number of death benefits into scope for IHT for the first time, alongside a freezing of the current nil-rate band at £325,000 until April 2031.
With less than a year to go to these significant changes to IHT, 30% of respondents have already changed how they are gifting. Of those changing their gifting behaviour, they are gifting more often, gifting earlier, gifting larger amounts and even expanding who they are gifting to.
“The changes coming in April 2027 will significantly reshape how pensions are treated in estate planning. Their inclusion into estate calculations, coupled with the freezing of the current nil-rate band (£325,000) and the residence nil-rate band (£175,000) until 2031, means that more people are going to find themselves caught in the Inheritance Tax net for the first time – and maybe without realising it. You should therefore start planning well ahead of time with early and open conversations with your families.
“If you are in a position to do so, gifting while you are alive can be one way to start planning around Inheritance Tax exposure, but it’s important to understand the rules and have the right advice. For example, someone giving a gift must live for at least seven years after making the gift for it to be fully Inheritance Tax exempt. If they die within the seven years, Inheritance Tax on the amount in excess of the available nil rate band is payable by the recipient on a sliding scale of 40% to 8%, depending on how much time has passed between the gift being made and the giver dying.”
Michelle Holgate, Director, Wealth Manager at RBC Brewin Dolphin
The purpose of gifting
While around half (46%) said they are not gifting for a specific purpose, among those who are, the most popular reasons are property deposits (30%), day to day living support (19%), and for shared experiences where both the person giving the gift and the person receiving it can enjoy the benefit of it together (16%). More than one in ten (12%) said they make gifts specifically for school or university fees.
Michelle Holgate continues:
“Whilst open discussions can be uncomfortable, an honest conversation with your loved ones before making any gifts can help you understand where passing on wealth through specific gifts will have the most impact. Finding a purpose and timeline for gifting helps to manage inheritors’ expectations around what they will receive when, and the implications for their own goals and financial planning.
“Our research reveals that gifting is about so much more than passing on money. As well as physical gifts and contributions, there is a clear desire to gift meaningful experiences and lasting family memories – whether that be the big trip you have always dreamed of or a ‘bucket list’ experience that you can do together with loved ones. Alongside supporting family members with key life moments such as getting on the property ladder.
“A wealth manager can help you strike the right balance between helping loved ones and making meaningful memories in your lifetime whilst protecting the financial security you need to live well throughout your retirement. It is important that you seek financial and tax advice to help ensure that you will have enough to meet your current and future needs.”
The current rules allow individuals to give away up to £3,000 worth of gifts each tax year without these being added to the value of your estate for IHT.
You can also give up to £2,500 to a child who is getting married or starting a civil partnership. If you want to make a larger financial gift, for example towards university fees or buying a property, this is known as a potentially exempt transfer (PET), and you must live for at least a further seven years for it to be IHT free.
1 – The survey was conducted in partnership with Find Out Now between 22 May and 5 June 2026 with a sample of 1,000 respondents. Participants were 55+ years old and met at least one of the following criteria: a personal income exceeding £100,000, investable assets over £500,000, or a property valued at more than £1 million.
