The Autumn Budget 2025 has been confirmed for 26 November, and the pressure on businesses is mounting. By arranging life insurance, you’ve already taken an important step to protect your family and your business. Many people never get around to it - so you’re ahead of the curve.

But with Labour pledging not to raise income tax, national insurance, or VAT, the Treasury will look elsewhere for revenue - and inheritance tax (IHT) is already being targeted.

Why Businesses Could Be Hit Hard
For business owners, upcoming changes could mean a bigger inheritance tax bill for your family, with IHT set to do more of the heavy lifting for government revenue.

• Business Relief reforms (from April 2026) - 100% relief will apply only to the first £1 million of qualifying assets. Anything above this, or assets that no longer qualify, will get 50% relief (effective IHT rate 20%), potentially exposing more of your business to tax.
• Pensions pulled into estates (from April 2027) - most unused pension funds and death benefits will be included in your estate for IHT, significantly increasing how much of your wealth is exposed to tax (though some exceptions, like death-in-service benefits, may apply).
• Possible lifetime cap on gifts - if introduced, even early transfers of wealth could trigger tax sooner than expected.

Why This Matters for Business Owners
Business owners are especially exposed because:

• Their wealth is often tied up in companies, pensions, and property.
• IHT thresholds are frozen until 2030, while asset values rise.
• Business Relief is narrowing, pulling more value into the tax net.

The result? Even families who never thought of themselves as wealthy could see up to 40% of their business value lost to HMRC.

Why Your Life Insurance Matters More Than Ever
The life insurance cover you already have can make all the difference:

✅ Covers the tax bill - your family gets instant liquidity to pay HMRC without selling off business assets.
✅ Protects your business legacy - co-owners and heirs aren’t forced into rushed decisions just to meet tax deadlines.
✅ Peace of mind - your policy is there to ease the financial burden at the hardest time.

But here’s the key point: your life insurance only sits outside your estate (and avoids IHT itself) if it’s written in trust*.

What You Should Do Now

✅ Double-check your policy is written in trust.

✅ Review who the beneficiaries are and make sure they’re up to date.

✅ Consider whether your current cover is still enough, given the potential tax changes.

You’ve already made a smart move by putting life insurance in place. Now, let’s make sure it’s working as hard as possible for you, so you and your family stay fully protected and in control of your legacy - before HMRC does.

👉 Contact us now on 0800 612 8005 to discuss placing your policy into trust and read more about trusts here. Or request a call-back from our Customer Care Team 👉 here.

*Trusts are not regulated by the Financial Conduct Authority
This article is provided for general information purposes only and does not constitute legal, tax, or financial advice. Tax rules and legislation may change, and their impact will depend on your individual circumstances. Before taking any action, you should seek professional advice from a qualified adviser to ensure your arrangements are appropriate for your situation.