Why Upcoming Pension and Inheritance Tax Changes Matter More Than You Think

Tax rule changes rarely feel urgent. They sit on the calendar, quietly approaching, until the moment they take effect, and by then their impact becomes fully realised.

A Message for the Years Ahead

Adjustments to pension taxation and inheritance tax may not arrive immediately, yet their long-term effects will be significant. These changes will influence financial wellbeing, business resilience, and strategic decision making across generations.

Both individuals and organisations have a valuable window to prepare. Early action is consistently the most effective approach.

What This Means for Businesses

Employee Retention and Benefits Planning

Expected shifts in pension tax treatment may influence how employees value workplace pensions. Even modest changes can affect the competitiveness of benefits packages, particularly for senior staff and higher earners.

In a tight labour market, employers who adapt early will strengthen recruitment and retention outcomes.

Succession Planning for Owners

Inheritance tax reform is expected to affect how family businesses and closely held companies transition ownership. Potential adjustments to reliefs or thresholds may increase liabilities, encouraging owners to:

• Revisit trust or company structures
• Review eligibility for business relief
• Explore alternative ownership arrangements
• Consider the timing of succession steps

Clarity on direction allows owners to secure long-term outcomes with increased confidence.

Executive Compensation

Pension contributions, allowances, and long-term wealth planning are central components of executive remuneration. Expected changes to tax treatment can influence negotiation dynamics, incentive structures, and retention planning.

Boards and HR teams should prepare for renewed discussions as reforms progress.

How can Oldfield help you?

If you’d like help understanding how these reforms could impact you and your business or book a call with one of our team, please reach out using the form below and we’ll guide you through the updates with clear, compliant advice.

Oldfield Advisory provides specialist support for business owners and company directors, preparing for intergenerational planning, offering personalised guidance on upcoming pension and inheritance tax changes, tailored planning, focused business reviews, succession support, and long-term wealth strategies.

Frequently Asked Questions

Q: Why should businesses and families plan now if future tax changes do not yet have confirmed dates?
A: The Autumn Budget confirmed the overall direction of reform, even though not every measure has a final implementation timeline. Strategic planning around pensions and inheritance tax takes time, and acting early offers more flexibility and more effective outcomes once the rules are finalised.

Q: How could changes to pension tax treatment affect employees and executives?
A: Adjustments to pension taxation may influence how individuals value workplace pension contributions and long-term reward structures. Employers may need to review contributions, benefits packages, and executive remuneration to remain competitive and support retention.

Q: How might inheritance tax reform affect business succession planning?
A: Future changes could alter liabilities for family businesses and closely held companies. Owners may benefit from reviewing trust arrangements, business relief eligibility, ownership structures, and the timing of succession steps well before new rules take effect.

Q: What should business owners review first as part of their planning?
A: Priority areas include:

• Benefits and pension structures
• Executive remuneration and long-term incentives
• Succession plans and shareholder arrangements
• Ownership and trust structures
• Estate planning strategies

These areas carry long-term financial consequences and are best reviewed early.

Q: Are there opportunities to strengthen tax and wealth planning before the new rules take effect?
A: Yes. Early planning can help reduce exposure to future liabilities, optimise pension and remuneration strategies, and improve the efficiency of business succession and wealth transfer.

Q: Will future Budgets introduce additional pension or inheritance tax changes?
A: The most recent Autumn Budget did not introduce further measures but confirmed the direction of travel. This gives businesses and families a stable window to plan. Future Budgets may add detail or adjust timelines, which is another reason early preparation is valuable.

Remember, if this is something you are concerned about, Oldfield are happy to guide you through the process.

Please note: This article is for general information purposes only and was correct as at the time of writing (10/12/25) and does not constitute financial advice. Tax rules and legislation are subject to change, and their application depends on your individual circumstances. We recommend seeking advice from a suitably qualified tax adviser, and where relevant, an FCA-authorised financial planner. Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.