Transact Inheritance Tax Index 2025 Overview

The Transact Inheritance Tax Index 2025 is a report that monitors changes in British household wealth and its implications for Inheritance Tax (IHT). Utilizing data from the Office for National Statistics, the report estimates the number of households potentially liable for IHT and the corresponding tax amounts. It outlines significant upcoming changes in IHT regulations, particularly the inclusion of pension wealth in estate calculations starting April 2027. This change is projected to increase the number of households liable for IHT from 6% to nearly 19%, affecting approximately 5.1 million households. The report details the current IHT framework, including the nil-rate band and residence nil-rate band, and discusses the potential impact on estate planning strategies. It emphasizes the need for financial guidance as many homeowners remain unaware of these changes. The report concludes that the evolving landscape of IHT necessitates a reassessment of financial plans, particularly for individuals with substantial pension assets.