For individuals with sizeable pension pots, the IHT changes could trigger demand for financial reviews. We could see more people choosing to take the 25 per cent tax-free lump sum from their pension pot and consider gifting some or all of it to their children or grandchildren.
This could in turn lead to more demand for trusts, which offer individuals oversight and control over use of the money they gift.
Overall, the chancellor is expecting to raise £40bn in taxes as a result of this Budget. This, combined with the introduction of new fiscal rules, has enabled significant spending in public services.
While this is an achievement and a break from the past, the government must ensure that tax changes are not at the expense of vulnerable or disadvantaged people.
Donna Holmes is a partner in the personal planning team at law firm Anthony Collins.
