The threat of a tax raid looms large over Britons who have diligently saved and invested to build their wealth.
With speculation mounting daily as to what tax rises could arrive in Rachel Reeves’s autumn Budget, it’s no wonder the nation’s financial advisers are fielding a rush of questions from worried savers.
But what are people asking about their finances and what is the advice being given on these vital issues?
Inheritance and pensions feature prominently, along with being able to afford to retire early – an ambition that many fear could be sunk by a tax squeeze.
The Chancellor has refused to rule out a wealth tax, but experts suggest she is more likely to tighten the screws using the taxes on wealth we already have.
The Mail on Sunday spoke to some of the country’s leading financial advisers, who revealed the questions their clients are asking most often and the answers they are giving them.
1. HOW CAN I AVOID THE INHERITANCE TAX NET?
Inheritance tax (IHT) is a major concern for many, and advisers are seeing a deluge of questions about mitigating it.
Everyone has a £325,000 inheritance tax-free allowance, known as the ‘nil rate band’, which can be doubled to a joint £650,000 if you are married or in a civil partnership.

The six burning questions everyone is asking financial advisers… and their answers
A further ‘residence nil rate band’ allowance of £175,000 per person applies if you own your home and leave it to direct descendants, delivering a maximum IHT-free allowance of £1million for a couple.
Above these thresholds, which are frozen until 2030, inheritance tax is charged on estates at the rate of 40 per cent.
Advisers say people want to understand the IHT gifting allowances, how they can give money away early, whether they can retain any control over funds, and how to get assets outside of the inheritance tax net.
Gary Steel, senior wealth planner at Canaccord Wealth, says: ‘Access to your money, as well as control of your money, is a key area to think about and this is where professional financial planning is helpful when looking at the pros and cons of different options.’
The most obvious way to pass money to your family without incurring a bill is through gifting. The standard annual inheritance tax-free gifting allowance is £3,000 in total for an individual, along with unlimited gifts of up to £250, but only one of these can be made to each person. Beyond this, any amount can be gifted, but you must survive for seven years for it to be free of inheritance tax. Die before then and inheritance tax is charged on a sliding scale.
However, a loophole exists, known as gifting out of surplus income. This allows unlimited inheritance tax-free gifts, provided they are part of a ‘regular pattern of giving’ and made out of income that isn’t required to maintain your usual standard of living.

Gary Steel, senior wealth planner at Canaccord Wealth

Simon Stygall, independent financial adviser at Flying Colours
Advisers report a flood of people interested in using this exemption.
Simon Stygall, independent financial adviser at Flying Colours, says: ‘More often than not, a tailored solution using a considered combination of these strategies is best.’
But before giving away money, it is important to ensure that it won’t negatively affect your finances later in life.
Charlotte Ransom, chief executive of Netwealth, says: ‘Once you feel secure that there’s excess capital, make the most of IHT allowances and consider larger gifts or trusts if they suit your goals – it’s better in their hands than the taxman’s.’
Trusts are a way to pass on wealth and beat inheritance tax that have been used for years by wealthy families.
But the rules have been tightened on these and they can incur tax charges, particularly if you want to keep some control over funds.
You usually cannot continue to benefit from what has gone into it, then still expect your beneficiaries to avoid inheritance tax.
Anyone considering using a trust should seek professional financial advice.
2. WILL MY PENSION POT BE AN IHT TRAP?
From April 6, 2027, pensions are set to be included in inheritance tax calculations.
Many more people will be dragged into having a potential inheritance tax liability by this, and it is a key concern for financial advisers’ clients.
Ms Ransom says: ‘It could be sensible to start drawing from your pension earlier, since the upcoming change to their IHT treatment makes them less attractive to preserve purely for inheritance purposes.’

Charlotte Ransom, chief executive of Netwealth

Alan Barral, a financial planner at Quilter Cheviot
Until the change comes in, unused pension pots are not liable for inheritance tax but may have income tax charged on withdrawals by beneficiaries.
Retirement pots can only be passed on free of income tax when someone dies before the age of 75. After this age, beneficiaries pay their normal income tax rate of
20 per cent, 40 per cent or 45 per cent on withdrawals from the pot.
Once pensions are liable for inheritance tax, those who die after the age of 75 could see their pot face double taxation.
Inheritance tax will be charged on unused pots and income tax on withdrawals. This could deliver an effective 67 per cent tax rate.
However, Alan Barral, a financial planner at Quilter Cheviot, says people under 75 should be careful about drawing from their pension immediately as the rules have not come into force, could be changed before they do, and once the money is out of their pot it could face inheritance tax. He says: ‘By drawing from your pension you could inadvertently expose your assets to a potential inheritance tax charge of 40 per cent, particularly if you have no plans to spend the money you’ve taken out.
‘A better idea would be to wait until we are closer to 2027 and then begin to weigh up the most tax-efficient strategy for drawing from your assets.’
Harry Bell, director of financial planning at Charles Stanley, suggests considering whole-of-life insurance, which can be used to cover an inheritance tax bill with a lump sum paid at death.
David Little, partner and chartered financial planner at Evelyn Partners, agrees but cautions on costs. He says: ‘When structured correctly – with the policy benefits paid into a trust for beneficiaries – these plans offer peace of mind by providing a tax-free lump sum to cover the IHT liability, helping ensure that the estate is passed down intact.
‘It’s worth noting that such policies can be costly, especially in later life, and health underwriting plays a key role in determining eligibility and pricing.’
3. CAN I ENJOY AN EARLY RETIREMENT?
Financial advisers say they have many clients who would choose to retire early but have concerns that their pot might not be large enough to do so.
For those who harbour this ambition, they say the key is to invest early and stick to the plan.
Jonathan Halberda, financial planner at Wesleyan, says: ‘Retiring earlier might be more achievable than many think. It’s about the steps you take to get there, like making the most of employer pension contributions, which are essentially “free money”.

Jonathan Halberda, financial planner at Wesleyan
‘The earlier you start, and the more regularly you review your goals, the more control you’ll have over your timeline.’
For those closer to their early retirement target, gaining a full understanding of their financial situation is essential. This is an area where advisers use something called cashflow modelling, which Mr Stygall says involves ‘stress-testing the robustness of a financial plan and adding “What if?” scenarios’. He adds: ‘Having a visual insight into what your retirement looks like, and how robust the plan is, is imperative.’
4. IS NOW THE BEST TIME TO INVEST?
Investment returns have been healthy in recent years, thanks to the US stock market’s substantial growth driving the global market upwards. But investors have had no shortage of headwinds to worry about, and this means the question ‘Is now a good time to invest?’ is never far from their minds.
Right now, the worry for many still relates to US President Donald Trump and what he could do next. ‘The Trump tariff episode obviously caused a lot of anxiety for investors, but as with many other sudden, short-term corrections in the past, equity markets have recovered,’ Mr Little says.
With so many unknowns, a lot of investors may be loath to commit, but sitting on their hands could prove costly as they miss out on gains, say advisers.
Mr Halberda says: ‘With markets unsettled and global uncertainty rising, hesitation is natural, but it doesn’t have to mean pressing pause. Investing should be a long-term game, and this could be the perfect moment to revisit how you’re doing it.
‘Aligning your approach with your goals, risk tolerance and cash flow will help you invest with confidence, whatever the headlines,’ he adds.
Mr Barral says: ‘When you read the news and it is constantly full of doom and gloom, it can really knock your confidence.
‘Too often we see DIY investors only gain the confidence to invest once the markets have already delivered the bulk of their investment returns.
‘Anyone that is concerned about incorrectly timing their entry into the stock market can use pound cost averaging to phase their money into the market.’
Pound cost averaging simply means investing regularly over time to mitigate the risk of putting in a lump sum only to see markets take a tumble.
In other words, you are buying into the market when shares dip and when they rise – smoothing out the volatility.

Rachel Reeves’s Spring Statement left her a wafer-thin margin to meet her self-imposed ‘fiscal rules’
However you invest, advisers say you must understand the risks and potential for losses. James Atkinson, financial planner at Hargreaves Lansdown, says: ‘Having a contingency, an emergency day fund, is critical to deal with unknowns. Assessing the risk you are willing to take is important – some of us might prefer a leisurely trip, such as a sedate cruise, others might prefer solo sailing across the ocean.
‘The destination might be the same, but you should only take the level of risk you can afford and are willing to accept.’
5. SHOULD I ACT BEFORE THE AUTUMN BUDGET?
Rachel Reeves’s Spring Statement left her a wafer-thin margin to meet her self-imposed ‘fiscal rules’ on spending and borrowing. Sluggish growth, combined with the £6 billion cost of U-turns on cuts to welfare and winter fuel payments, mean that she is expected to deliver tax hikes in her Autumn Budget.
But with a Labour manifesto pledge not to lift the rate of
income tax, employee national insurance, VAT or corporation tax, the Chancellor is somewhat painted into a corner. Financial advisers say their clients are concerned about how she may seek to take more tax in by other means, such as on capital gains, inheritance or changes to pension rules. But their advice is to avoid acting on speculation.
Mr Barral says: ‘Some clients try to pre-empt the changes that any government will make in their next budget. The best course of action is often to sit and wait until closer to the time.’
He adds that the best thing to do is to make the most of your annual tax allowances now.
He says: ‘This will ensure that, regardless of what changes are introduced, you are already managing your money as tax-efficiently as possible.’
6. WILL MY BUSINESS FACE A TAX RAID?
It’s not just those concerned about personal taxes that are rushing to advisers with queries – entrepreneurs are also worried.
In last year’s Autumn Budget, it was announced that precious inheritance tax allowances for small business owners and farmers would be slashed.
Beyond the first £1 million of combined agricultural and business assets, full IHT relief would be reduced by half from April 2026, essentially creating an inheritance tax rate of 20 per cent.
Many business owners and farmers want to know if they should sell up or pass on wealth now, or if they can find some other way to avoid their legacy coming with a huge tax bill attached.
Mr Barral says: ‘Some business owners are asking themselves whether it is still worth continuing or whether they should cash in and enjoy their retirement.
‘The first port of call is to understand what life looks like if you were to sell up. We build cashflow models for our clients so that they can weigh up the costs of selling versus not selling.
‘The second step is to determine how much money you would need to enjoy a comfortable life post-sale.’
Changes also affect people who hold shares in small companies listed on the junior AIM stock market. Previously, qualifying company shares were totally free of inheritance tax once they had been held for two years.
Again, this relief will be halved, meaning 20 per cent inheritance tax on qualifying AIM shares, and the £1 million allowance given to business owners won’t apply here.
Investors with AIM portfolios now want to know what to do with them. Mr Bell says: ‘AIM-listed shares have long been a go-to for those looking to reduce inheritance tax, thanks to the full business property relief.
‘For those holding AIM shares mainly for the tax benefits, it’s worth having a proper review with your adviser to decide if this is still the best strategy.’