October 2024 Budget – Is it time to revisit your long-term financial plan?

The October 30th Budget has created some additional financial planning challenges. Particularly affecting those using their Pensions for succession planning, Pensions to hold Commercial Property, holding existing IHT avoidance products, business owners generally; all should now consider whether they need to revisit their long-term financial plans with a view to making adjustments and strategy changes as befits their personal circumstances and objectives under the new tax regime. 

 From 6th April 2027 Pensions are deemed to be part of an individual’s estate for IHT purposes. This is a monumental change for Pensions and will now require a rethink for many. With the potential for double taxation for post-75 Pension death benefits innovative approaches to dealing with this issue should now be considered.  

Previously fully exempt IHT products now need an urgent revisit, to ensure that the strategy will still be fit for purpose in the new tax environment. Of course, changes to currently non-affected products cannot be ruled out in the future. Strategic Gifting, Trusts and Protection Plans in various degrees are likely to factor into tax efficient planning strategies moving forward for many. 

 In answer to the question posed, YES, it is time to revisit your long-term financial plan. If you do not have such a plan, then now is the time to consider the ramifications of not having one and put one in place. IHT remains an “optional” tax for those that plan sufficiently. 

 Sedulo Wealth Management is a Chartered Independent Financial Advice Firm and is part of the Sedulo Accountancy Group of Companies. If you would like to discuss how these tax changes will impact you, we are well positioned as a Group to assist you and we will be pleased to speak with you, so please do get in touch.