Inheritance Tax (IHT) remains one of the most talked-about parts of the UK tax system. Rising asset values and frozen allowances have pushed more estates into the IHT net, and a series of government measures over the last 18 months have already changed who pays and what is taxed. Here’s a clear, up-to-date summary of the rules you need to know — and what indications (so far) there are that the Chancellor may change them in the forthcoming Autumn Budget on 26 November 2025.

What the rules are now (practical, headline points)

• Nil-rate band: The basic IHT nil-rate band remains £325,000 — that is, the first £325,000 of an estate is generally tax-free.
• Residence nil-rate band (RNRB): If you pass your main residence to a direct descendant (children or grandchildren), an additional £175,000 RNRB can apply, potentially taking the combined tax-free allowance to £500,000 for individuals (and up to £1m for married couples or civil partners where allowances are transferred). The RNRB and related taper rules are still in force.
• Threshold freezes: The Government has legislated to fix the nil-rate band and residence nil-rate band at current levels until the 2029–30 tax year, effectively extending the freeze on these allowances and increasing the risk that future rises in house prices and savings will push more estates over the threshold.
• Pensions and IHT: A major policy change confirmed earlier this Parliament is that pension funds will become subject to IHT from 6 April 2027 (removing the broad exemption that applied previously). This is expected to bring significantly more estates within scope.

These are the rules that apply today (and the next statutory adjustments we know about). The combination of frozen allowances and the policy to tax pensions from 2027 is already raising the number of estates that will face IHT.

Are further changes likely in the upcoming Autumn Budget?

As of mid-November 2025 there is no confirmed further reform announced in the Budget documents available to the public, but commentary from tax specialists and legal partners highlights active debate and a real prospect of further measures aimed at increasing receipts from wealth. Commentary and pre-Budget analysis signal the Treasury is looking at measures related to:

• tightening reliefs that reduce IHT for business and agricultural property, or capping some reliefs above certain values; and
• reforming rules on lifetime gifts, trusts and the interaction between residence tests and domicile/residency rules.

In short: expect pressure to raise revenue from wealth and property, but until the Chancellor sets out measures in the Budget statement (and the Finance Bill that follows) nothing is final. Independent forecasts and legal commentators point to a strong possibility of targeted tightening rather than a wholly new IHT system being introduced immediately.

Why this matters to families, farmers and business owners

Freezes in allowances and the pensions change mean more households will become liable for IHT. The Financial Times and HMRC data show an increase in the number and total value of estates paying IHT in recent years; analysts warn that farms, family businesses and larger pension pots will be most affected by any further tightening.

Practical steps to reduce risk — how CMA Accountancy can help

CMA Accountancy offers practical, tax-aware planning to reduce the risk of unwelcome IHT bills. Key ways they can help include:

• Estate and will review — ensuring wills are drafted to take advantage of available allowances and use spouse exemptions properly; advising on beneficiary designations.
• Lifetime gifting and trust advice — structuring gifts and appropriate trust arrangements to remove value from an estate in a way that complies with the seven-year gifting rules and mitigates IHT exposure.
• Business and agricultural relief planning — advising on qualifying strategies for Business Property Relief and Agricultural Property Relief, and modelling the potential impact of any changes to those reliefs.
• Pension and retirement planning — reviewing pension arrangements ahead of the 2027 change so clients can assess potential IHT exposure and consider options (where available) to manage liabilities.
• Valuation and record-keeping — accurate valuations, up-to-date records and clear documentation (especially for business assets or property) are essential if you are to rely on reliefs or exemptions. CMA can co-ordinate professional valuations and probate support.

CMA Accountancy’s tax specialists can run scenario modelling to show likely outcomes under current law and under plausible Budget changes — giving families and business owners a clearer picture of risk and tax-efficient options.

Bottom line

The current IHT framework (nil-rate band £325,000; RNRB £175,000) remains in force and has been legislatively frozen until 2029–30. The major confirmed policy shift to watch is the inclusion of pension funds in the IHT net from April 2027, which will materially affect many estates. There are strong signs the Government will continue to look at wealth and property taxes in the Autumn Budget (26 November 2025), but precise measures will only be known when the Budget is published. In the meantime, sensible, proactive estate planning with an accountant and adviser — such as CMA Accountancy — is a practical way to reduce risk and put a robust plan in place before any further changes occur.