Many Misjudge Their Inheritance Tax Bill – Why Personalised Advice Matters

Inheritance Tax (IHT) is often misunderstood. Some assume they’ll be liable when they won’t be. Others overlook it entirely, or significantly underestimate what their estate might owe. This confusion is more than a technicality  –  it can affect how families plan, how wealth is passed on, and whether opportunities to protect a legacy are missed.

At Fogwill & Jones, we regularly speak with individuals and families who want to do the right thing for their loved ones, but feel uncertain about how IHT works  –  and whether it applies to them. That’s perfectly understandable. The rules can feel complex, and the impact of small decisions can be far-reaching.

But as recent research shows, the confusion is widespread, and even basic estimates are often inaccurate.

What the research tells us

Recent figures cited in FTAdviser (August 2025) reveal how poorly understood IHT remains among the public:

• Among respondents with estates worth £100,000, 42% believed there would be an IHT charge on their death. On average, they estimated a tax bill of over £35,000.

• For those with estates between £100,000 and £325,000, 55% believed IHT would apply to them. The average expected liability? £48,000.

• Even among those with larger estates  –  £325,001 to £750,000  –  48% admitted they had no idea how much tax might be payable. Those who did estimate thought they’d face an average IHT bill of £56,000.

These numbers highlight two core issues:

  1. People are often mistaken about whether they’re liable. Many believe they’ll pay IHT when, under current thresholds, they likely wouldn’t.
  2. Even those who are liable often miscalculate how much. Estimates vary significantly and are frequently disconnected from the reality of how IHT is calculated.

What’s behind the confusion?

There are a few reasons IHT is so frequently misunderstood:

• Thresholds and exemptions are not well known. For example, the current nil-rate band (£325,000) and residence nil-rate band (£175,000) can potentially shield up to £500,000 per person  –  or £1 million for a married couple  –  from IHT. But many people don’t know how these work, or whether they apply to them.

• Property values can tip estates into liability. With rising house prices, many people are unaware that their estate may have crossed the threshold  –  especially if they’ve owned property for many years.

• Assumptions are made without advice. Individuals often rely on hearsay, online articles, or generalised tools to estimate IHT, rather than seeking a calculation based on their specific circumstances.

The cost of misunderstanding

This lack of clarity can lead to two unhelpful outcomes:

• Missed planning opportunities. Without understanding whether IHT applies, or how much might be due, people often delay or avoid taking action that could reduce their liability  –  such as lifetime gifting, creating trusts, or making use of allowances.

• Unintended consequences for beneficiaries. If no planning is in place, families may face larger tax bills than necessary. In some cases, this might mean assets need to be sold quickly to cover the liability, which can add stress at an already emotional time.

Why tailored advice makes a difference

Inheritance Tax planning is not just about reducing a future tax bill  –  it’s about ensuring that your wealth is passed on according to your wishes, in the most efficient and thoughtful way possible.

At Fogwill & Jones, we help clients:

• Understand their likely IHT position, based on their full financial picture  –  including property, pensions, business assets, and investments.

• Make use of allowances and reliefs, such as the residence nil-rate band or Business Relief, where applicable.

• Develop a structured plan that protects their estate, supports their family, and aligns with their long-term goals.

• Avoid common pitfalls, such as inadvertently gifting assets in ways that don’t reduce the estate’s value for IHT purposes.

Our approach is always personal  –  because the right strategy depends not just on the numbers, but on your family structure, values, and vision for the future.

Final Thoughts

You don’t need to have a multi-million-pound estate for IHT to matter. With property prices as they are, many families are closer to the threshold than they realise. But equally, many worry unnecessarily – assuming they’ll face a significant IHT bill, when in reality they may not.

The only way to gain real clarity is through a conversation tailored to you.

If you’re unsure where you stand with Inheritance Tax, or simply want to make sure your legacy is protected, we’re here to help. At Fogwill & Jones, we bring decades of experience, technical expertise, and a personal approach to every client relationship – helping you plan with confidence and peace of mind.

Leaving a Legacy: What Matters Most in Estate Planning (Beyond the Money)

When people think about estate planning, the first thing that often comes to mind is tax. How much will be lost to Inheritance Tax? How can we preserve more of the estate for our loved ones?

These are important questions, and at Fogwill & Jones, we address them with clarity, care, and technical expertise. But true estate planning goes beyond tax efficiency. It’s about something far more personal: what kind of legacy you want to leave behind.

Your legacy isn’t just measured in pounds and pence. It’s shaped by your values, your relationships, and the impact you hope to make for generations to come.

More than a transfer of wealth

Of course, passing on wealth is part of the picture. But for many of our clients, estate planning is also a way to:

  1. Support family in meaningful ways
  2. Model good financial habits
  3. Pass on values as well as valuables
  4. Give to causes close to their hearts
  5. Ensure harmony and clarity within the family

In short, it’s about creating a plan that reflects who you are and what matters to you.

Legacy values: what do you want to be remembered for?

This is a deeply personal question, and one we encourage our clients to explore. For some, legacy means providing financial security for children and grandchildren. For others, it’s about charitable giving, supporting education, or preserving family history.

Consider questions such as:

• What values do I want to pass on?

• What kind of impact do I hope my wealth will have?

• What conversations do I need to have with my family now, so they’re prepared later?

• What would make me feel proud and at peace about how I’ve structured my affairs?

These reflections form the foundation of a meaningful estate plan. And when paired with the right financial tools and advice, they can be translated into clear, confident action.

The role of family conversations

One of the most powerful -and often overlooked – aspects of legacy planning is communication. We know that talking about inheritance can feel uncomfortable. But silence can leave room for misunderstanding, conflict, or unspoken assumptions.

At Fogwill & Jones, we often support clients in preparing for, or even facilitating, family conversations around:

• What’s in the estate and how it will be distributed

• Why certain decisions have been made

• What responsibilities might come with an inheritance

• What the giver hopes the gift will enable or represent

These conversations don’t have to be formal or complex. But they do need to be thoughtful. In our experience, families who talk openly tend to avoid surprises – and are more likely to carry their loved one’s values forward.

Structuring your legacy with purpose

Once your intentions are clear, we can help shape them into a robust plan. This may include:

• Making or updating a will

• Creating trusts to support younger beneficiaries or protect assets

• Strategic gifting during your lifetime

• Charitable giving through legacies or donor-advised funds

• Clear documentation to avoid disputes or confusion later on

Just as important is reviewing your plans regularly, especially after key life events like a marriage, birth, sale of a business, or major financial shift.

Beyond financial security: leaving peace of mind

A well-thought-out estate plan is a gift in itself. It offers your family clarity, reduces the administrative burden during what may be an emotional time, and reinforces the values you’ve lived by.

At Fogwill & Jones, we see legacy planning as an act of care – a way to ensure your intentions are honoured, your wishes respected, and your loved ones supported. It’s not just about wealth transfer. It’s about leaving things better for the people and causes you care about most.

How we can help

Every family, every estate, and every intention is unique. That’s why we take the time to understand the whole picture – financial and personal – before offering advice.

If you’d like to begin shaping your legacy, or revisit plans already in place, we’re here to help. With expertise, sensitivity, and a clear process, we’ll support you in creating a plan that reflects your values and protects the future.

The Shift to Private Markets: What It Means for Investors

In recent years, a noticeable trend has emerged among high-net-worth individuals and family offices: a growing movement away from traditional public markets and towards private assets such as private equity, venture capital, and direct investments. This shift reflects both changing market dynamics and evolving investor priorities.

With the public markets offering fewer new listings and greater short-term volatility, many long-term investors are increasingly drawn to the potential for stronger returns, diversification, and influence that private markets can offer. But what’s behind this trend – and what does it mean for your own investment strategy?

Why Are Investors Looking Beyond the Stock Market?

Public markets have long been the cornerstone of investment portfolios, offering liquidity, transparency, and broad access. Yet for many wealthier investors, public equities no longer hold the same appeal they once did.

Several factors are driving the shift:

Fewer public listings:

Many fast-growing companies are choosing to stay private for longer. This means that by the time they do go public, much of the early-stage growth – and its associated returns – has already been captured.

Market volatility:

Geopolitical tension, interest rate uncertainty and inflation pressures have contributed to more volatile public market performance, making long-term planning more difficult.

Access to innovation:

Some of the most exciting developments in technology and sustainability – from artificial intelligence to clean energy – are happening in the private space. Investors who want early access to these trends increasingly need to look beyond the public stock exchange.

Opportunities in AI, Clean Energy, and Beyond

Artificial intelligence (AI) is a prime example of a sector where private investment is flourishing. From start-ups developing next-generation language models to businesses using AI to transform healthcare, logistics and finance, the real momentum is happening well before these companies reach the IPO stage.

Similarly, the renewable energy sector is seeing substantial private capital inflows, driven by global decarbonisation targets, government incentives, and technological innovation. Private infrastructure projects, battery storage developments and clean energy platforms are all examples of investments where private capital is leading the way.

By allocating capital to these kinds of ventures, investors can align their portfolios with long-term structural trends – and potentially gain exposure to returns not available in public markets.

What Are the Benefits of Private Market Investing?

For those with sufficient wealth, knowledge and access, private investments can provide a number of advantages:

Potential for higher returns:

Private equity, in particular, has historically outperformed public markets over longer time horizons, though it does carry higher risk.

Diversification:

Adding private assets to a traditional portfolio can reduce correlation and offer greater resilience in market downturns.

Control and influence:

Direct investments allow for a level of engagement not possible through public equities – something that can be especially appealing for family offices or entrepreneurial investors.

Access to early-stage innovation:

Investing in earlier funding rounds can offer access to disruptive ideas long before they become mainstream.

Important Considerations and Risks

Private market investments are not suitable for everyone. They tend to involve longer lock-in periods, less liquidity, and more complexity than traditional investments. Due diligence is critical, and the ability to assess risk – often with incomplete information – is essential.

It’s also important to recognise that not all private opportunities deliver outsized returns. Many ventures fail, and capital can be at risk for years before any outcome is known.

This is where experienced, objective advice plays a vital role. At Fogwill & Jones, we work with clients to assess whether private market exposure fits within their overall investment strategy, risk appetite and long-term goals.

What This Means for Your Financial Plan

The rise of private markets is not a passing trend – it’s a structural shift that is likely to reshape how many investors build and manage wealth. But the right approach depends on your individual circumstances.

For some, incorporating private equity or venture capital may enhance diversification and open up new opportunities. For others, focusing on traditional asset classes within a robust, tax-efficient framework may remain the most effective path forward.

The key is to ensure that every investment – public or private – is aligned with a clear strategy, and that it serves your broader life and financial objectives.

Final Thought

As the investment landscape evolves, so too must the strategies we use to preserve and grow wealth. Whether you’re considering your first private market allocation or simply want to understand your options, we’re here to help you navigate the possibilities with clarity, caution and confidence.

Let’s explore what’s right for you – now and in the years ahead.

Navigating the UK’s Evolving Tax Landscape: What It Means for Your Financial Plan

As the UK’s tax environment continues to shift, staying informed is essential to making confident, forward-thinking financial decisions. Recent proposals around pension tax relief, inheritance tax (IHT), and other key areas may significantly influence how individuals and families approach long-term planning. While nothing is final until legislation is enacted, it’s wise to understand what’s on the horizon – and how best to prepare.

At Fogwill & Jones, we believe smart planning is about staying ahead of change, not reacting to it. Here’s what you need to know about potential tax changes, and how a well-structured financial plan can help you adapt with clarity and confidence.

  1. Pension Tax Relief: Changes Could Be Ahead

The government is reportedly reviewing the current system of pension tax relief, with speculation around whether it may move towards a flat rate for all taxpayers. Currently, higher and additional-rate taxpayers benefit more generously, receiving tax relief at their marginal rate. A shift to a flat rate could reduce the incentive for some to save into pensions – but it could also improve fairness for lower earners.

What this means for you:

If you’re a higher-rate taxpayer, now may be a prudent time to review your pension contribution strategy. Maximising contributions while the current relief structure remains in place could enhance your retirement savings. For those earning close to key tax thresholds, especially the £100,000 mark where personal allowances taper, pension contributions can still serve as a powerful tool for reducing effective tax rates.

 

  1. Inheritance Tax: A Changing Conversation

The Autumn Statement introduced proposals to adjust the scope of inheritance tax, particularly around the treatment of pension death benefits and business or agricultural property reliefs. While full details are pending, one significant proposal is that from April 2027, unspent pension pots may be counted within a person’s estate for IHT purposes. Historically, pensions have been a highly efficient vehicle for passing on wealth outside the IHT net.

What this means for you:

This change, if implemented, could shift how pensions are used in legacy planning. Reviewing your beneficiary nominations is now more important than ever. You may also wish to reconsider whether it is more tax-efficient to leave pensions to a spouse or civil partner, given their exemption from IHT.

Moreover, if you’ve previously relied on business or agricultural reliefs to manage IHT liability, these proposals may require a review of your estate plan to ensure it remains effective under future rules.

 

  1. Annual Allowances: Use Them or Lose Them

In times of change, the fundamentals still matter. Making full use of annual tax allowances – including pensions, ISAs, and capital gains exemptions – remains one of the most consistent ways to reduce tax exposure.

With the capital gains tax (CGT) exemption now only £3,000 and further reductions being considered, reviewing any non-ISA investments becomes a more urgent task. Similarly, regular gifting and use of income exemptions within IHT can help reduce the future size of your estate.

What this means for you:

Efficient use of allowances is a key pillar of sound financial planning. These opportunities reset each tax year and can be lost if not used. For couples, combining allowances can create significant tax savings across income, gains, and inheritance.

 

  1. The Value of Forward-Looking Advice

Tax rules will continue to evolve, often in unpredictable ways. That’s why we encourage clients not to anchor their decisions solely to what is, but also to what could be. Proactive planning ensures your finances are resilient in the face of change.

At Fogwill & Jones, we don’t believe in one-size-fits-all advice. Whether you’re building wealth, preparing for retirement, or considering how to support the next generation, your strategy should reflect both current legislation and your long-term goals.

 

Key Actions to Consider:

  • Review pension contributions and reliefs, particularly if you’re a higher or additional-rate taxpayer.
  • Revisit your estate plan, with a specific focus on pension beneficiary nominations and IHT exposure.
  • Use your annual allowances for ISAs, pensions, and capital gains before the tax year ends.
  • Stay informed, but avoid knee-jerk reactions. Legislative proposals often take time to finalise.
  • Seek professional advice to ensure your plan remains fit for purpose.

Final Thought

In an evolving landscape, the most valuable asset is not a product or a portfolio, but a plan – one that’s tailored, responsive, and underpinned by expert advice.

At Fogwill & Jones, we help clients move forward with clarity, not complexity. If you’re unsure how potential tax changes may affect your financial future, now is the right time to speak with us.

Let’s make sure your plan is working as hard as you are.

The information in this article is intended for guidance only and does not constitute personal advice. Tax treatment depends on individual circumstances and may be subject to change. Please get in touch to chat with one of our qualified financial advisers before taking action.

Why Financial Advice Shouldn’t Come from Influencers

Social media has transformed how we consume information. From the way we learn new skills to the products we buy, digital platforms have become part of everyday life. But when it comes to financial advice, the rise of online influencers raises important questions – and real concerns…

A recent article by Investment Week revealed that nearly 40% of UK investors have turned to social media platforms for financial advice in the past two years. YouTube and Facebook were the most commonly used platforms, with many also relying on influencers, search engine results, and even AI tools like ChatGPT.

We understand why people are drawn to content that feels quick, accessible, and relatable. But we also believe strongly that when it comes to your financial wellbeing, advice should come from a place of expertise, accountability, and personal understanding – not from someone looking to build a following.

Here’s why turning to professional, regulated advisers still matters – and why now, more than ever, it’s worth thinking twice before acting on something you saw in a viral video.

The Finfluencer Phenomenon: A Growing Trend

The term “finfluencer” refers to individuals on platforms like TikTok, Instagram and YouTube who share money-related content. They may talk about saving strategies, investing tips, crypto trends, or even early retirement hacks. Some are genuinely passionate about financial education – and some even have qualifications. But many do not.

According to research by Fidelity International, 12% of investors have acted on advice from influencers, and even more are turning to content from internet searches or AI. The Financial Conduct Authority (FCA) has flagged serious concerns, noting that many of these sources are “unregulated and unverified”. Alarmingly, the FCA has already taken enforcement action against rogue influencers in the UK – with arrests made and criminal proceedings under way.

The risks here are not hypothetical. Taking advice from a stranger on social media – someone who doesn’t know your circumstances and is not held accountable for what they say – can have very real financial consequences.

When “Advice” Isn’t Advice At All

One of the key distinctions between an influencer and a professional financial adviser is regulation. At Fogwill & Jones, we’re authorised and regulated by the Financial Conduct Authority. This means we are legally obliged to give advice that is suitable for you, based on a detailed understanding of your circumstances, goals, and risk tolerance.

Influencers, by contrast, are not held to these standards. Most don’t know you, and they’re not required to consider your best interests. Many are paid to promote certain products or platforms, and those incentives aren’t always clear.

Your financial journey is unlike anyone else’s. Whether you’re building a career, supporting a family, preparing for retirement or planning your legacy, you deserve advice that is built around you – not around a generalised audience.

The danger here is subtle but serious. It’s not just about bad advice; it’s about advice that sounds good, feels intuitive, or seems to work for someone else – but could lead to real consequences for your finances if applied without context.

We work closely with our clients to shape a financial roadmap that reflects what matters most to them – whether that’s peace of mind, future security, or greater flexibility in later life.

Confidence, Not Clicks

At Fogwill & Jones, our goal is not to chase followers but to build long-term relationships. We want to equip you with clarity, insight, and confidence – so you can make informed decisions, protect what matters, and plan your future on solid ground.

Financial planning is about more than money. It’s about feeling secure, having choices, and knowing you’re prepared for what’s ahead – that’s not something you’ll find in a trending reel or a quick tip on your feed.

If you’re ready for advice that’s grounded in experience, tailored to your life, and built to last, we’re here to help.

Why Protection Matters: Safeguarding Your Future with Insurance

When planning for the future, we often focus on building wealth, achieving financial goals, and creating opportunities for the next generation. But there’s another side to good financial planning that is just as important: protection.

Protection policies – including life insurance, income protection, and critical illness cover – provide a financial safety net when life takes an unexpected turn. They ensure that you and your loved ones are supported, no matter what happens. At Fogwill & Jones, we believe that real financial confidence comes not just from the plans you make, but from the security you build around them.

Life Insurance: Looking After Loved Ones

Life insurance offers peace of mind that your family will be financially supported if the worst should happen. It can help cover everyday living costs, outstanding debts, and even future expenses such as university fees. This type of cover can be particularly important for those with dependents, mortgages, or other long-term financial responsibilities.

There are various types of life insurance policies, including term assurance and whole-of-life cover. Term assurance provides cover for a set period and pays out if you pass away during the term. Whole-of-life policies, as the name suggests, provide lifelong cover and typically come with a higher premium but guarantee a payout regardless of when death occurs. Choosing the right policy depends on your financial goals, family circumstances, and the level of cover needed.

Income Protection: Supporting You When You Can’t Work

Your ability to earn an income is one of your most valuable assets. Income protection insurance provides a regular income if you’re unable to work due to illness or injury. This type of policy can be especially important for those who are self-employed or whose employers do not offer extended sick pay.

Income protection typically covers a percentage of your income, often up to 60-70%, and continues to pay out until you are able to return to work or reach retirement age, depending on the terms of your policy. It’s a critical safety net that allows you to maintain your lifestyle and meet financial commitments while you recover.

It’s important to understand the deferral period (the time between stopping work and when payments begin), and whether the policy is reviewable or guaranteed, as these factors can affect both the cost and suitability of the cover.

Critical Illness Cover: Financial Help During Health Challenges

A serious illness can be life-altering, both emotionally and financially. Critical illness cover provides a lump sum payment if you’re diagnosed with a specified condition such as cancer, heart attack, or stroke. This money can be used however you need – whether that’s paying for private treatment, making adaptations to your home, or simply covering household bills while you focus on your health.

Each policy outlines which conditions are covered and under what circumstances a claim can be made. Some policies also cover children or offer partial payouts for less severe conditions. Having this type of cover in place means you won’t need to dip into savings or take on debt at a time when financial stability is more important than ever.

The Role of Protection in Holistic Financial Planning

Protection is often overlooked in favour of more visible aspects of financial planning, such as investing or saving for retirement. However, without a solid safety net, the plans you work hard to build could be vulnerable to disruption. Think of protection as the foundation upon which all other financial goals rest.

Having the right insurance in place means your financial future remains on track, even if life doesn’t go according to plan. It also brings peace of mind, allowing you to focus on the present without the burden of ‘what if’ scenarios weighing on your mind.

A Foundation for Resilience

Having the right protection in place isn’t about expecting the worst – it’s about being prepared. These policies form the foundation of a resilient financial plan. They give you the confidence to move forward with your goals, knowing that you’ve taken sensible, proactive steps to protect what matters most.

At Fogwill & Jones, we help our clients identify the protection that best fits their circumstances and long-term plans. We take the time to understand your unique situation, explain your options clearly, and help you find policies that align with your values and financial objectives.

If you’re unsure about the right cover for you, we’re here to help you make informed, thoughtful decisions.

Mid-Year Financial Health Check: Are You on Track for 2025?

With the first half of the year behind us, now is an ideal time to take a step back and assess your financial position. A mid-year financial health check allows you to measure progress against your goals, review your investment performance, and make any necessary adjustments to your tax planning strategy. In an ever-changing economic and geopolitical environment, such timely reviews are not just advisable – they are essential.

Conducting a comprehensive financial review mid-year can help identify potential shortfalls and opportunities, keeping you on track for a more secure and prosperous 2025. This approach not only supports long-term wealth building but also ensures you are making informed financial decisions that reflect current market conditions.

Reviewing Your Financial Goals

Start by revisiting the goals you set at the beginning of the year. Are you saving enough towards your retirement, your children’s education, or a future home? Have your priorities changed due to personal or professional developments? Realigning your plan to reflect your current aspirations helps ensure that your financial strategy remains relevant and effective.

Clarity around your goals is the foundation of any successful financial plan. Use this mid-year checkpoint to ensure that your short-, medium-, and long-term objectives remain realistic and aligned with your income, lifestyle, and timeframes.

Assessing Investment Performance

Markets have faced considerable volatility in recent months, influenced by factors such as ongoing trade tensions, shifting central bank policies, and broader geopolitical uncertainties. Reviewing your investment performance mid-year gives you the opportunity to evaluate whether your portfolio remains aligned with your risk tolerance and long-term objectives.

This is also a chance to check whether your asset allocation is still appropriate. Diversification remains a cornerstone of sound investing, particularly in uncertain times. Rebalancing your portfolio, if necessary, helps maintain a healthy balance between risk and return.

Reviewing your investment strategy regularly can also reveal if any holdings have consistently underperformed or if there are new opportunities that better align with your goals. If you work with a financial adviser, this is the perfect moment to revisit your investment review together.

Revisiting Tax Planning Strategies

Tax planning is not a once-a-year activity. Mid-year is a sensible point to consider whether you are making full use of available allowances and reliefs, including:

  • ISA contributions
  • Pension contributions
  • Capital Gains Tax allowances
  • Gift allowances for Inheritance Tax planning

Strategic use of these reliefs can significantly enhance your financial efficiency. With potential tax reforms on the horizon, it is prudent to take advantage of current rules while they remain in place.

If you are a business owner or have more complex financial arrangements, there may be additional planning opportunities around dividend strategies, corporation tax changes, and salary versus drawdown decisions. These should all be reviewed in the context of your broader financial picture.

Adapting to Change

The financial landscape continues to evolve. Inflation pressures, global trade disruptions, and potential changes to tax legislation all highlight the importance of flexibility in your financial plan. Rather than reacting to headlines, a structured mid-year review enables you to respond thoughtfully and with purpose.

Regular check-ins help ensure you are not only protecting your assets but also positioning yourself to take advantage of change. Whether it’s reallocating investments, increasing savings, or reassessing risk levels, timely action based on reliable insights can strengthen your financial resilience.

Why a Mid-Year Financial Review Matters

A mid-year financial health check is more than a routine task – it’s a proactive step toward financial well-being. By reflecting on your goals, performance, and plans mid-year, you give yourself time to make meaningful adjustments before year-end. This can reduce financial stress, improve outcomes, and bring greater clarity to your financial journey.

Whether you’re a seasoned investor or just beginning your wealth-building journey, a structured review offers invaluable perspective. It ensures that you’re on the right path and gives you confidence to make informed decisions, no matter what the markets or the world throw your way.

How Fogwill & Jones Can Support You

At Fogwill & Jones our advisers can help you carry out a financial health check and work with you to make sure your plans are on track to meet your objectives.

Let us help you take stock of where you are and make informed decisions to keep you on course for your 2025 goals. Contact us today to arrange your mid-year financial review and ensure your plans remain on the path to success.

Inheritance Tax Planning Ahead of 2026 Changes

From April 2026, significant changes to Inheritance Tax (IHT) reliefs on business and agricultural assets will take effect. For individuals and families whose wealth includes trading businesses, farmland, or other qualifying assets, these changes may lead to larger tax liabilities on their estates – unless careful planning is undertaken now.

Currently, under Business Relief and Agricultural Relief rules, qualifying assets can receive up to 100% relief from IHT. This has enabled many families to pass on substantial value without triggering a tax charge. However, the government has confirmed that from April 2026, this full relief will only apply to the first £1 million of eligible assets. Any value above this threshold will receive only 50% relief. This shift could have a material impact on the estates of those with valuable land holdings or business shares.

What This Means in Practice

For example, if an estate includes £2 million of qualifying agricultural land, under current rules the full amount may be exempt from IHT. From April 2026, only £1 million would be fully exempt, while the remaining £1 million would be taxed at 20% (after 50% relief), resulting in a potential IHT bill of £200,000 on just that portion of the estate.

Such figures underline the importance of reviewing your estate planning strategy now, well before the changes come into force.

Strategies to Consider Now

There are a number of forward-looking strategies that can help mitigate the potential impact of these upcoming rules:

1. Lifetime Gifting

Transferring assets during your lifetime can be an effective way to reduce the value of your estate. Provided you survive for seven years after making the gift, it may fall entirely outside your estate for IHT purposes. This approach can be especially useful for business owners or landowners who are confident in their succession plans.

2. Trust Planning

Trusts remain a versatile tool for wealth preservation and transfer. They allow you to maintain a degree of control over how assets are used, while potentially reducing the taxable value of your estate. Trusts can be complex and must be structured carefully to align with your goals and the evolving tax environment.

3. Pensions and ISAs

ISAs are subject to IHT on death and from 2027, pensions will also be subject to IHT. This makes pensions a valuable component of estate planning. In some cases, it may be beneficial to preserve pension savings while drawing on other, more taxable assets. Structuring your investments tax-efficiently can have long-term benefits for your beneficiaries.

4. Asset Reorganisation

Where appropriate, it may be worth considering whether business or agricultural assets can be restructured to maximise the reliefs available. This could involve changing the ownership structure or redistributing assets among family members.

Timing Is Critical

April 2026 may feel distant, but in estate planning terms, it is relatively soon. Some strategies, like gifting or trust creation, can take time to implement and benefit from. Acting now gives you the best chance to make the most of the current reliefs before they are scaled back. Early planning also ensures you are not making decisions under time pressure, allowing for a more thoughtful and tailored approach.

Why Choose Fogwill & Jones

At Fogwill & Jones, we understand that every client’s situation is unique. Our advisers have deep experience in helping clients navigate complex tax rules, often in coordination with legal and accountancy professionals. Whether you’re managing a family farm, a private company, or a diverse portfolio, we will work with you to develop a strategy that reflects your values and objectives.

We believe in empowering our clients through clarity and foresight. Our inheritance tax planning service is designed to give you peace of mind – ensuring your wealth is protected, your loved ones are provided for, and your legacy endures.

If your estate includes business or agricultural assets, we strongly recommend starting the conversation today. Contact us to arrange a consultation and begin planning with confidence.

 

The Importance of Diversification Within a Portfolio – Especially in Times of Political Change

As political landscapes shift, so too do the financial markets that respond to them. With Donald Trump’s policy direction once again making waves globally, many investors are questioning whether their current investment strategy remains fit for purpose. 

While it’s completely natural to feel unsettled by political uncertainty, now is precisely the time to return to one of the fundamental principles of sound investing: diversification. 

Understanding Diversification: More Than Just Spreading Risk 

Diversification is the process of spreading your investments across a variety of assets, such as equities, bonds, property, and cash, as well as across different sectors and geographies. The aim is simple but powerful: to reduce exposure to any single area of risk. 

By not relying on the performance of one type of investment, diversification provides a measure of protection against the unexpected. When one market dips, another might remain stable or even rise. It’s a way to smooth the investment journey, potentially reducing volatility and improving long-term returns. 

However, diversification is not about chasing trends or making reactive decisions. It’s about creating a robust and resilient structure that can adapt to change, without being shaken by it. 

Why Political Events Prompt Investment Review 

We are living through a period of significant geopolitical flux. The resurgence of Donald Trump as a political force is having a tangible impact on markets, particularly in areas such as trade relations, technology regulation, energy policy, and tax structures. Some investors are understandably looking to reposition their portfolios in light of these developments. 

We know that many of our clients will be considering diversifying their holdings in response to these changes; while the instinct to reassess your investments is a healthy one, it is important to pause before acting. 

Rash Decisions Can Be Costly 

In times of uncertainty, one of the biggest risks is the temptation to make hasty decisions. While diversification is a prudent strategy, it must be part of a carefully considered plan – not a spur-of-the-moment reaction to a headline. 

Restructuring your portfolio without a full understanding of the implications can lead to over-concentration in unfamiliar areas, increased exposure to hidden risks, or even tax inefficiencies. Making changes for the sake of change can ultimately be more damaging than doing nothing at all. 

This is why calm, measured advice is so essential. 

Thoughtful Diversification Is a Process, Not a Panic Response 

At Fogwill & Jones, we encourage clients to focus on their long-term goals rather than short-term noise. Diversification should be a forward-thinking strategy, tailored to your risk tolerance, time horizon, and personal circumstances. 

This may involve reviewing the balance between growth and defensive assets, considering overseas exposure to hedge against localised risk, or exploring alternative investments where appropriate. But every decision should be grounded in a clear rationale, not political emotion. 

The Role of a Trusted Adviser 

Investing isn’t about predicting the next political move. It’s about building a plan that can stand the test of time, regardless of who holds office. That’s where professional financial advice becomes invaluable. 

A good adviser doesn’t just react to the news – they help you understand it in the context of your broader financial picture. They ask the right questions, offer perspective, and work with you to make decisions that are truly in your best interest. 

At Fogwill & Jones, our approach is personal, not transactional. We take the time to understand what matters to you and offer clear, jargon-free guidance that supports your financial goals through all market conditions. 

Final Thoughts: Don’t Go It Alone 

Markets will always respond to politics – but your financial plan should respond to your life. Diversification remains one of the most effective tools for managing investment risk, but only when applied with care, purpose and professional insight. 

If you’re wondering how recent events might affect your portfolio, we invite you to speak to one of our experienced advisers. Let’s have a calm, constructive conversation about your next steps – one that puts your long-term security first. 

We’re here when you need us. Reach out today and take the next step towards a more confident financial future. 

Navigating Market Fluctuations: How to Stay Focused on Your Long-Term Wealth Goals

In an age where headlines are delivered instantly and market updates arrive by the second, it’s easy for investors to feel overwhelmed by the noise. Whether it’s tariff negotiations, geopolitical tensions, or unexpected economic reports, short-term market disruptions can shake even the most seasoned investor’s confidence. 

Most recently, the announcement of the 2025 Trump tariffs – targeting key international goods – has reignited concerns about global trade tensions and their potential impact on markets. Investors saw an immediate reaction: stock market volatility, headlines forecasting economic slowdowns, and renewed anxiety about inflation. It’s a perfect example of how quickly sentiment can shift in response to a single event. 

But successful wealth building isn’t about chasing headlines or reacting to every twist and turn. It’s about staying disciplined, mentally grounded, and committed to your long-term goals – even when markets get turbulent. 

Understanding the Psychological Impact 

When events like the 2025 tariffs hit the news cycle, they often trigger a powerful emotional response. Fear and anxiety can dominate, and the urge to “just do something” can be overwhelming. This is a natural reaction – our instincts are wired to avoid perceived danger. In investing, that might mean pulling money out of the market at the first sign of trouble. 

However, acting on these impulses often leads to poor decision-making. Selling during a downturn and buying back after the market recovers is a costly pattern. It turns short-term volatility into long-term losses. 

Being aware of these psychological triggers is the first step in avoiding them. By understanding that these feelings are normal and common (and often counterproductive), you can train yourself to pause, reflect, and resist knee-jerk decisions. 

The Power of a Disciplined Plan 

At Fogwill and Jones, we believe that a well-constructed investment plan is your solution to maintaining focus on your long-term goals. Your strategy should be based on your unique goals, risk tolerance, time horizon, and financial situation – not the headlines of the day. 

 Sticking to this plan, even when markets get rocky, is often what separates successful investors from the rest. Historically, markets have proven resilient. They’ve weathered wars, recessions, trade disputes, and global pandemics – and still delivered long-term growth for patient investors. 

If your plan was designed to get you through a 20 or 30-year retirement, a single week or month of volatility shouldn’t prompt a radical shift. Staying focused on your goals allows you to rise above the noise and avoid unnecessary detours. 

Rebalancing vs. Reacting 

Of course, staying the course doesn’t mean standing still. There’s a big difference between reacting emotionally and rebalancing strategically. 

Rebalancing is a thoughtful, periodic adjustment to ensure your portfolio remains aligned with your original asset allocation. It might mean trimming positions that have grown disproportionately or reallocating based on a significant change in your financial goals. This is proactive, not reactive. 

Reacting, on the other hand, is often impulsive – like selling off stocks because of a news story or buying into a trending sector without considering your broader strategy. These types of decisions are driven by emotion, not logic, and can derail your long-term progress. 

When markets are volatile, that’s the perfect time to revisit your goals – not abandon them. Are your objectives still the same? Has your risk tolerance shifted? If not, your plan likely doesn’t need to change either. 

Final Thoughts: Trust the Process 

We understand that market swings can be unsettling. But as your wealth management partner, we’re here to help you maintain perspective and make decisions that serve your long-term interests. 

If you’re looking for a deeper dive into the 2025 Trump tariffs, we covered this in our recent blog post: A Tumultuous Start to Q2: Navigating Uncertainty in Global Markets – it’s a helpful complement to this broader discussion. 

At Fogwill and Jones, we don’t just manage portfolios – we guide investors through uncertainty with clarity and confidence. If recent headlines have made you question your financial path, let’s have a conversation. A moment of uncertainty is often the best time to reaffirm your strategy – not abandon it. 

 If you’d like some guidance on maintaining focus on your long-term goals or creating your own financial plan, call us today on 01142 588899 or email info@fogwilljones.co.uk.