Ingrid McCleave, partner at DMH Stallard, explores the practicalities of writing a life insurance policy in trust, arguing that it can be a successful way of mitigating the consequences of inheritance tax
Budget changes to the UK’s inheritance tax (IHT) regime continue to resonate. IHT receipts, which hit a record £7.5bn in 2023/24, are forecast to grow further. But there is good news for those affected: writing a life insurance policy in trust can mitigate the impact on their beneficiaries.
The Autumn Budget announcements on IHT asset reliefs affect both UK domiciled and non-domiciled individuals (non doms), taking effect from this April. Meantime, agricultural property relief (APR) and business property relief (BPR) ensure the survival of family farms and other businesses after the owner’s death but reforms that limit these reliefs will take effect from April 2026, primarily affecting farmers, family businesses and of course non doms a year earlier.
