INSIDE THIS ISSUE

A major shift in pension taxation is set to reshape
wealth-transfer planning in the UK. From 6 April 2027,
unspent pension pots will no longer be exempt from
Inheritance Tax (IHT) and may be taxed at 40% if
your estate exceeds the IHT threshold. On page 08,
we explain how this change challenges traditional
strategies and why families should rethink how they
draw down their retirement assets. Early preparation,
including estate valuation and exploration of tax
efficient options such as gifting or trusts, will be
essential to protect your legacy.
'Unretiring' is on the rise as financial pressures and
inflation erode retirees’ spending power. While some
return for fulfilment, others cite loneliness or financial
necessity. On page 04, we consider why retirement
is becoming more flexible, with part-time roles and
phased approaches gaining popularity. Proactive
financial planning and exploring phased retirement
options are essential to securing a comfortable and
sustainable future.
The new tax year offers a fresh £20,000 ISA
allowance, providing a valuable opportunity to shield
your investments from capital gains and dividend
taxes. Starting early maximises compounding
benefits, giving your money more time to grow. Regular
investing can help smooth out market volatility and
maintain discipline during uncertain times. ISAs
also offer flexibility, allowing gradual contributions
throughout the year. Turn to page 10.
Dividend tax rates increased from 6 April 2026,
making tax-efficient strategies more important than
ever. The government raised dividend tax rates by 2
percentage points. The ordinary rate rose to 10.75%,
and the upper rate to 35.75%, while the additional rate
remains at 39.35%. However, you don’t pay tax on
dividend income within your personal allowance (£12,570
for 2026/27) or your annual dividend allowance of £500.
On page 11, we explain planning options.