Towerstone Accountants Launches Specialized Service to Help Navigate Pension Inheritance Tax Changes

Accountancy firm Towerstone Accountants has launched a specialized Inheritance Tax Advisory Service designed to help individuals navigate significant changes to pension taxation set to take effect in 2027. Under new regulations, unspent pension funds will become subject to Inheritance Tax (IHT) at 40%, potentially creating substantial financial challenges for families.

The impending tax changes represent a dramatic shift from previous pension inheritance rules. Historically, pensions have been viewed as a tax-efficient method of transferring wealth. However, the upcoming modifications mean that any remaining pension funds at the time of an individual's death will now be included in the deceased's estate, rendering them liable for inheritance taxation.

Christina Odgers, Managing Director at Towerstone Accountants, emphasized the importance of proactive financial planning. Many individuals have structured their long-term financial strategies assuming pensions would remain outside the IHT framework. The new service will provide personalized strategies to help clients mitigate potential tax liabilities.

The advisory service will offer comprehensive approaches to estate planning, including optimized pension withdrawals, early gifting plans, alternative investment strategies, and estate structuring through trusts. By leveraging HMRC's tax-free gifting rules and exploring tax-efficient investment options like Business Relief-qualifying assets, clients can potentially protect more of their wealth from inheritance taxation.

Laura Stevenson, an estate planning expert with the firm, warned that delaying action could result in significant financial losses. The 2027 deadline provides a critical window for individuals to review and restructure their estate plans strategically.

These taxation changes could impact thousands of families, potentially reducing the value of inherited wealth by up to 40%. The new service aims to provide individuals with sophisticated, personalized strategies to preserve their financial legacy and minimize tax exposure.