From April 2027, most unused pension funds and pension death benefits will be included in the IHT estate and taxed at 40% above available allowances. For those with large pension pots, this fundamentally changes how pensions fit into the estate plan. Strategies to consider include: reviewing nomination of beneficiaries, increasing drawdown to reduce the pension pot, pension-funded gifting into trust, and reviewing the role of annuities. Planning should begin well before April 2027.

The annual pension allowance is £60,000 per tax year, or 100% of earnings if lower — including employer contributions. Up to three years of unused allowance can be carried forward. For those with adjusted income above £260,000, the allowance tapers down to a minimum of £10,000. The lifetime allowance was abolished in 2024 — but the tax-free cash lump sum cap (currently £268,275) remains.

The annual ISA allowance is £20,000 per person per tax year, frozen until 2031. Investment growth, dividends, and interest inside an ISA are completely free of income tax and capital gains tax — now and in the future. A surviving spouse or civil partner can inherit an additional ISA allowance equal to the value of the deceased's ISA holdings. Junior ISAs allow £9,000 per child per year.

The main routes are: full use of nil-rate bands (£325,000 per person plus up to £175,000 Residence Nil-Rate Band); systematic gifting using annual exemptions and gifts from surplus income; trust structures that remove assets from the estate while retaining access; business relief on qualifying business assets; and pension planning to reduce the IHT exposure of large pension pots from April 2027. 19 out of 20 Bluebond clients pay zero Inheritance Tax.

A Family Investment Company (FIC) is a bespoke company structure that holds family wealth with different share classes separating control, income, and growth. Founders retain voting control for life. Future investment growth accrues to the next generation's non-voting shares — outside the founders' estate for IHT. A FIC is typically suitable for families with surplus wealth intended to be held long-term for the benefit of the next generation. It is not a short-term tax wrapper — it is a multi-generational family wealth structure.

A Flexible Reversionary Trust is a discretionary trust where the settlor gifts capital and retains a contractual right to receive defined portions back each year. Each year, the settlor can choose whether to take their entitlement or leave it within the trust. Portions not taken fall outside the estate once the seven year rule is satisfied. It allows gradual estate reduction while retaining controlled access to capital useful for those who need flexibility but also want to reduce IHT exposure over time.

Based on Bluebond's outcomes for clients who fully implement the recommended IHT planning. Individual results vary depending on personal circumstances, estate structure, and willingness to implement. The figure reflects the proportion of Bluebond clients whose IHT liability is eliminated or reduced to zero through a coordinated plan combining gifting, trust structures, pension planning, business relief, and full use of available allowances.

Not with Bluebond. Most high net worth individuals work with a separate accountant, IFA, and solicitor. None of whom has full sight of the others' work. Pension contributions are not timed against bonus payments. CGT is not managed against ISA capacity. IHT planning is not coordinated with the investment portfolio. Bluebond's legal, tax, investment and financial specialists work as one team, building one coordinated plan for one transparent fixed fee. The value is in the coordination, not the individual parts.

The simplest first step is a free initial conversation with a Bluebond specialist, or download the free Wealth Planning Guide below. We review your income, investments, pension, property, and estate position. We will identify where tax is being overpaid and where wealth transfer can be made more efficient. No obligation, no charge for the initial consultation.

Wealth planning is the coordinated management of your income, investments, pensions, property, and estate to maximise what you keep, grow, and pass on within HMRC's rules. Anyone with net assets above £1 million, significant investment income, a large pension pot, or a future business exit will benefit from a coordinated plan. The value comes from the interaction between different tax regimes which only a joined up approach captures.