Discussions around potential reforms to the UK’s inheritance tax system are ongoing, with some advocating for a more progressive structure. Suggestions include introducing different tax rates based on the size of the estate and revising reliefs such as business property relief (BPR) and agricultural property relief (APR). These reliefs currently allow certain assets to be passed on with reduced or no IHT, but there is concern that they might be exploited by wealthy individuals to minimise their tax liabilities.

The Labour Party has hinted at possible changes, including the inclusion of pension funds in the taxable estate upon death and the introduction of a new nil-rate band specifically for pensions. These potential reforms aim to create a fairer system and ensure that the tax burden is more evenly distributed.

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