Autumn Budget 2024: Inheritance Tax Changes

Individuals, families, and estate planners seeking to understand the announced changes to Inheritance Tax (IHT) from the Autumn Budget 2024. Provides a clear overview of the IHT changes affecting business and agricultural reliefs, pensions, and nil-rate bands, helping estate planners and executors prepare for future liabilities. Awareness of these changes is essential for accurate estate planning and ensuring compliance with HMRC rules when these measures come into effect. A tax advisor can provide practical guidance on how these changes affect your estate.

Talk to an Expert About IHT Changes from the Autumn Budget

IHT Reliefs

Changes were announced to IHT Business Relief and IHT Agricultural Property Relief. Currently, these reliefs can provide significant tax benefits for estates with qualifying business and agricultural assets. Under these reliefs, a benefit of either 50% or 100% relief is available from IHT with no cap. Consulting accountants ensures that reliefs are claimed correctly. From April 2026, qualifying estates with agricultural or business assets will only be able to claim 100% tax relief on the first £1 million of assets. Any value over £1 million will see tax relief restricted to 50%. Further consultation is expected next year with more details.

Inherited Pensions

Most undrawn private pensions are currently excluded from IHT. From 6 April 2027, the value of unused pension funds and death benefits payable will be included in IHT calculations. This means the pension pot will be added to other estate assets and potentially chargeable to IHT. Pension scheme administrators will also be responsible for reporting and paying any IHT due on unused pension funds and death benefits.

IHT Nil-Rate Bands

The IHT nil-rate bands have been frozen for a number of years and were set to remain at current levels until 5 April 2028. The Chancellor announced the freeze will now continue until 5 April 2030.

The nil-rate band will continue at £325,000
The residence nil-rate band will continue at £175,000
The residence nil-rate band taper will continue to start at £2 million

Get Expert Advice on Using Your IHT Allowances and Reliefs

The Autumn Budget 2024 introduces updates to Inheritance Tax rules that could affect estate planning and tax liabilities for individuals and families. Misunderstanding these changes may result in unexpected exposure or missed reliefs. At Cigma Accounting, we support clients across Farringdon, Shoreditch, and Clerkenwell in reviewing estate plans and adapting to new rules with guidance from a trusted tax accountant in London.

Whether you are reassessing nil rate bands, residence reliefs, or lifetime transfers, professional advice ensures compliance while optimising available tax reliefs. Cigma Accounting provides tailored inheritance tax planning London to help clients prepare for legislative changes and manage IHT efficiently, with physical offices across London.

Prepare for 2024 Inheritance Tax Changes

The Autumn Budget 2024 introduces changes to Inheritance Tax rules that could impact your estate planning. Our tax advisers help individuals and estate planners understand the updates, adjust strategies, and ensure estates are structured efficiently to minimise IHT.

Trusted guidance from London-based accountants, focused on accuracy, clarity, and compliance.

CIGMA Accounting

CIGMA Accounting Ltd is a forward-thinking accounting and tax firm based in London, dedicated to delivering high-quality compliance, tax planning, and business advisory services to entrepreneurs, landlords, and growing SMEs. With offices in Wimbledon and Farringdon, we combine local expertise with a tech-driven approach to simplify accounting. Our services include corporation tax filing, VAT compliance, HMRC investigation support, R&D tax credit claims, capital allowances optimisation, and bookkeeping automation. What sets CIGMA apart is our ability to blend traditional accounting rigour with AI-powered systems that reduce errors, save time, and provide real-time financial insights. Our team ensures that every client - from startups to high-net-worth individuals - receives a bespoke solution aligned with their growth goals. Whether you need strategic tax planning, help with HMRC disclosures, or a full outsourced finance function, CIGMA Accounting delivers clarity, compliance, and confidence.

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