Govt urged to provide clarity for internationally mobile families in Spring Statement

The government should look to provide clarity for internationally mobile families and on pensions coming into the scope of inheritance tax (IHT) in its Spring Statement, Bentley Reid director of wealth management, Mike Winstanley, has argued.

In his ‘wishlist’ for the Spring Statement, Winstanley highlighted that the UK’s structural advantages, such as its legal infrastructure and capital markets, remained “world-class”.

However, he warned that the dramatic shift from domicile to residence-based taxation had introduced a ‘friction tax’ that went beyond the rate itself.

“Families are navigating a maze of transitional rules for pre-2025 trusts, and without clear, well-signposted guidance, we risk seeing more reactive relocation,” Winstanley stated.

“People aren't moving because of the tax but rather because they can’t plan their lives around a moving target.”

Winstanley also called for operational clarity on pensions coming into the scope of IHT from April 2027, noting that an ‘instructional manual’ for executors was still missing.

“We currently have no simple way for personal representatives to get accurate valuations from providers, nor clear rules to prevent the 'double-tax' of IHT and income tax on the same pot,” he continued.

“Clients are making big decisions right now about their savings and what they leave behind for their children. For these plans to work, we need the final technical details settled immediately.”

Other areas the government was urged to consider in its Spring Statement included the stability of Business Relief and Agricultural Property Relief, as the constant policy changes on reliefs were leaving business owners “wary”.

Winstanley stressed that business owners planned over decades, rather than five-year cycles, and when these thresholds were treated as variable, reinvestment in the UK economy was being stifled.

He therefore called on the government to make sure the existing framework was preserved and allowed to settle.

Finally, Winstanley called for stability around lifetime gifting, noting that the current gifting regime, including the seven-year rule and taper relief, remained a cornerstone of family succession.

"However, persistent speculation about reform is creating an environment of defensive planning,” he said.

“We are seeing a growing tension where families feel pressured to accelerate gifts, not because it aligns with their circumstances, but because they fear the legislative goalposts will move again.

“Navigating this 'closing window' of opportunity adds unnecessary friction to what should be a considered process driven by affordability and family readiness.

“To reduce this distortion and allow for disciplined, long-term decisions, the government should provide a clear statement of stability.”

---