A New Era of IHT: The next great growth engine?

Introduction

Economies move in cycles. Those who spot the next opportunity early often outperform. We’ve seen this play out in financial services: advisers who embraced platforms or digital-first models have built scale and value rapidly, while late adopters struggled to catch up. The same principle applies today. Inaction can be costly - sometimes the risk of standing still outweighs the risk of engagement.

“Kiki”, the Chinese word for crisis, famously combines the characters for “danger” and “opportunity.” It’s a concept advisers understand well as they balance risk and reward in portfolios. Today, the UK planning landscape reflects this duality. On the one hand we have a tax regime that threatens massive wealth destruction for clients, compounded by the risk advisers face if assets and relationships are lost. But this very risk provides advisers with the opportunity to lead conversations that matter, deepen trust and futureproof their client book.

Those who seize this moment will differentiate their service and strengthen intergenerational ties.

The surge in client interest

Inheritance Tax planning isn’t just about mitigating tax - it’s about preserving family wealth and strengthening client relationships across generations. Our latest research shows that advisers are already feeling the impact of growing client concern and the opportunity to lead these conversations has never been greater.

Advisers are reporting a surge in IHT enquiries. The numbers speak for themselves:

• 88.5% of advisers have seen an increase in IHT enquiries since recent policy changes
• 91% agree that helping beneficiaries save on IHT will assist in retaining family assets
• 77.5% say they are being more proactive in discussing IHT planning with clients

This isn’t a passing trend, it’s a structural shift. The UK is experiencing an unprecedented transfer of wealth and without clear planning, inheritance tax can erode family assets significantly. Advisers who act now will not only deliver better outcomes for clients but also secure long-term relationships across generations.

Level of adviser agreement with statements on IHT

Why Business Relief is central to retention

Helping beneficiaries save on IHT isn’t just good advice, it’s good business. When advisers help families retain wealth, they strengthen trust and create continuity across generations. BR is a powerful tool in this strategy because:

• It preserves access to capital during their lifetime
• It qualifies for IHT exemption after two years, making it efficient and predictable
• It complements other solutions like protection plans and trusts, offering flexibility in planning

Our research highlights that 53.5% of advisers want more help in the Business Relief ("BR") space, underlining the growing role of BR in intergenerational planning.

Level of adviser agreement with statements on IHT

BR offers a unique advantage: it helps mitigate IHT while allowing clients to retain control and flexibility - two factors that matter deeply to families navigating complex financial decisions. By positioning BR as part of a broader estate planning conversation, advisers can differentiate their service and deepen client engagement.

Turning adviser insight into proactive planning

Here are three practical tips for advisers to leverage this opportunity:

1. Lead with family outcomes

IHT planning resonates most when it’s framed around protecting family wealth and continuity. Many advisers find that conversations focussed on legacy and long-term security are more engaging than purely technical tax discussions.

• Highlight the family benefits of planning, such as keeping wealth within the family across generations
• Share    examples    where    thoughtful    planning    supported financial security and preserved family assets
• Position Business Relief as a flexible solution that aligns with these goals without limiting client control

2. Make BR part of your retention strategy

Helping beneficiaries save IHT strengthens adviser relationships beyond the first generation.

• Use BR as a tool to engage heirs and future decision-makers early
• Offer family meetings to discuss estate planning strategies
• Highlight BR’s role in maintaining control while reducing tax exposure
• Use this as an opportunity to introduce your services to younger family members

3. Respond to rising demand with confidence

With over half of advisers seeking more support in the BR space, now is the time to build expertise. Clients expect clarity and reassurance, especially in a volatile policy environment.

• Invest in CPD and technical training on BR solutions.
• Partner    with    providers    offering    strong    support    and transparent product structures.
• Use provider resources (guides, calculators, case studies) to simplify client conversations.

The bigger picture

Intergenerational planning is an essential part of your arsenal. Advisers who embrace it will futureproof their client book and create lasting value for families.

BR is a cornerstone of this strategy, offering a practical, flexible solution that meets client needs today and tomorrow.

For more information, contact your local Business Development Manager

Source: Foresight data, survey of 200 financial advisers