Protection insurers pay out record sum

In 2023, protection insurers paid out a record £7.34bn in claims in, supporting those facing bereavement, illness and injury. The total value of critical illness claims rose to £1.2bn, with cancer the most common reason for claiming.  Over 1,660 income protection claims have been paid out for more than 10 years, highlighting the value of insurance. 

Latest data1 reveals a record £7.34bn was paid out in protection claims in 2023, supporting those facing bereavement, illness and injury. This equates to around £20.1m in daily payouts, underscoring the vital role of protection insurance in safeguarding financial stability. 

Individual protection policies accounted for £4.85bn of this total, covering more than 275,000 claims across life insurance, income protection and critical illness. Notably, the total value of individual critical illness claims rose to a record £1.2bn, a 13% increase from 2022. The average critical illness claim reached £67,267, with cancer remaining the top cause for claiming, amounting to a total of £777m in claims in 2023. 

Income protection claims also saw a rise year-on-year, totalling £177m – up by 2% from the previous year. While musculoskeletal issues led the number of claims, mental health issues represented the highest total claim values at £37m. Significantly, over 1,660 income protection claims have now been paid out for more than 10 years, with 376 of these extending over 20 years, highlighting the long-term benefits of such cover. 

Reassuringly, claims acceptance remains high, with 98.3% of claims approved, reflecting the reliability of protection policies. However, common reasons for declined claims include non-disclosure of pre-existing conditions or not meeting policy criteria. 

These figures emphasise the importance of protection insurance for financial security in times of need. For valuable peace of mind, discuss your protection needs with us. 

1ABI and GRiD, 2024 

Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. 

Spring Statement 2025

“A serious plan for growth”

On 26 March, Chancellor of the Exchequer Rachel Reeves delivered her Spring Statement unveiling updated economic forecasts from the Office for Budget Responsibility (OBR), announced further reductions to welfare spending and confirmation of a rise in defence spending. The Chancellor reiterated her commitment to “just one major fiscal event a year,” with no further tax rises announced. Ms Reeves stated that her task was to “secure Britain’s future in a world that is changing before our eyes” adding that the government has “a serious plan for growth.”

Fiscal rules “non-negotiable”

The Chancellor began her Statement by saying Labour had been elected to “deliver a decade of national renewal” before listing the government’s achievements during its first nine months in office.

Ms Reeves went on to say that the updated OBR forecast showed that, without the actions she was delivering in her Statement, the 2029/30 budget would have been in deficit by £4.1bn. However, the OBR estimates that her policy changes, including welfare reforms and day-to-day departmental spending cuts, have restored in full the government’s planned headroom, with a surplus of £9.9bn still expected in 2029/30.

Economic forecasts

The Chancellor outlined the OBR’s latest assessment of the UK economy, with the independent forecaster predicting a much slower pace of growth this year than previously expected. Ms Reeves acknowledged she was “not satisfied with these numbers” when detailing a growth forecast of just 1% for 2025, a significant downgrade from October’s 2% prediction. The OBR has, however, increased its growth forecasts for each of the following four years.

Ms Reeves also mentioned that the OBR had raised this year’s forecast for Consumer Price Index inflation to 3.2% although the rate was expected to fall back to the Bank of England’s 2% target by 2027. In addition, the Chancellor noted that the OBR’s projections show real household disposable income will grow “at almost twice the rate” previously anticipated.

Other key measures announced include:

Defence

  • An additional £2.2bn funding for the Ministry of Defence (MOD) in 2025/26.

Transformation Fund

  • Confirmation of the creation of a £3.25bn fund to support the reform of public services and seize opportunities from digital technology and Artificial Intelligence (AI).

Tax

  • Plans to increase the number of tax fraudsters charged every year by 20%
  • HMRC to use cutting-edge tech to combat tax avoidance.

Housing

  • Confirmation of an additional £2bn in social and affordable housing in 2026/27
  • £625m over four years to boost training for skilled construction workers in England
  • The OBR confirms that housebuilding is now projected to reach a 40-year high – 1.3 million homes over the next five years.

Investments

  • The government is looking at options for reforms to Individual Savings Accounts (ISAs) to get the right balance between cash and equities to earn better returns (though not guaranteed) for savers
  • Working with the government, the Financial Conduct Authority will deliver targeted support to give people the confidence to invest and mitigate the risks.

A reminder of some key tax measures previously announced in the Autumn Budget 2024:

  • The rate for Business Asset Disposal Relief and Investors’ Relief will increase to 14% from 6 April 2025 and then to 18% from 6 April 2026
  • Inheritance Tax (IHT) nil-rate bands will stay at current levels until 5 April 2030. From 6 April 2027 most unused pension funds and death benefits will be included within the value of a person’s estate for IHT purposes, following initial and technical consultations on draft legislation
  • Annual subscription limits remain at £20,000 for ISAs, £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2030
  • The Enterprise Investment Scheme and Venture Capital Trusts are extended to 2035
  • The Income Tax Personal Allowance and higher rate threshold remain at £12,570 and £50,270 respectively until April 2028. From April 2028, these personal tax thresholds will be uprated in line with inflation.

The Chancellor closed her Statement saying, “Delivering security for our country and security for working people – that is what drives this government. That is what drives me as Chancellor… and that is what drives the choices that I have set out today.”

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding of the Spring Statement, taxation and HMRC rules and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.

 All details are believed to be correct at the time of writing (26 March 2025).

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

News in Review

“We have to be quite careful at this point in how we calibrate our response” 

Last week, the Bank of England’s Monetary Policy Committee (MPC) held Bank Rate at 4.5%, a widely expected move but one that was more emphatically supported than analysts had predicted. 

At its meeting on 19 March, eight MPC members voted to maintain Bank Rate at 4.5%, with the sole dissenting voice seeking instead a quarter-percentage point reduction to 4.25%. Indeed, one member who had voted for a 0.5% cut last month, this time sided with the majority in opting to keep Bank Rate at the same level. 

In announcing the outcome, the Committee noted that ‘substantial progress on disinflation over the past two years […] has allowed the MPC to withdraw gradually some degree of policy restraint,’ even if more needs to be done to ‘continue to squeeze out persistent inflationary pressures.’ 

Explaining its decision to take a ‘wait-and-see’ approach, the MPC made reference to growing economic issues, including global trade policy uncertainty, especially in the wake of US President Donald Trump’s tariff announcements. “We have to be quite careful at this point in how we calibrate our response because we’re still seeing a very gradual fall in inflation,” Governor Andrew Bailey commented, before adding “we need to accumulate the evidence.” The MPC has until 8 May, when its next meeting is scheduled, to do so. 

Same story for the Fed 

Similarly, the Federal Reserve last week held its benchmark interest rates unchanged at its March meeting, a decision that means the range of 4.25% to 4.5%  hasn’t shifted since December. 

At the meeting, the Fed also maintained its forecast for two cuts in 2025. Commenting on the decision, Fed Chair Jerome Powell stressed the need for patience, “We do not need to be in a hurry to adjust our policy stance, and we are well-positioned to wait for greater clarity,” he said, adding “the right thing to do is to wait […] for greater clarity about what the economy’s doing.” 

UK wage growth stays strong 

Back in the UK, the latest employment release from the Office for National Statistics (ONS) showed that wage growth had stayed strong in the three months to January.  

Wages, excluding bonuses, grew by 5.9% in that period, according to the latest release, matching the strong showing a month earlier. With wage growth continuing to outstrip inflation, which stood at 3% in January, analysts note that these robust earnings could be responsible for Bank Rate staying higher for longer. Indeed, wage increases have exceeded inflation since July 2023. 

Meanwhile, the rate of unemployment remained at 4.4% at the start of 2025, giving rise to a labour market that is “relatively unchanged,” according to Liz McKeown, ONS Director of Economic Statistics. 

“The wider labour market picture is relatively unchanged, with the number of employees on payroll broadly flat in the latest period and with little growth seen over much of the last year,” she said. 

UK consumer confidence creeps higher 

Confidence among UK consumers ticked upwards for a second consecutive month in March, according to the latest GfK Consumer Confidence Index, released on Friday. The Index rose to a three-month high of -19 in March. The reading remains below the survey’s long-run average of -10. “The current stability is to be welcomed but it won’t take much to upset the fragile consumer mood,” commented Neil Bellamy, GfK’s Consumer Insights Director. 

Chancellor to give economic update in Spring Forecast 

Chancellor Rachel Reeves was expected to provide updates on her plans for welfare spending, aid and defence, among other things at the Spring Forecast on Wednesday 26 March. Ms Reeves has downplayed the Spring Forecast’s significance, having committed to holding just one major economic event each year in the name of stability. 

Even so, Ms Reeves faces a tricky balancing act after official figures revealed last week that government borrowing rose to £10.7bn in February. This total far outstripped the £6.5bn predicted by the government’s independent forecaster and has led analysts to expect the announcement of spending cuts to meet the government’s self-imposed rules for the economy. 

There was a surprise announcement early on Tuesday as the Chancellor vowed £2bn in grant funding to deliver up to 18,000 new homes in England. The funding is described by the government as a ‘down payment on the June spending review.’ 

 Here to help 

Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have. 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. 

All details are correct at time of writing (26 March 2025) 

Residential Property Review – March 2025

Housebuilding falls to seven-year low as planning delays persist 
 

Housebuilding in England has dropped to its lowest level since 2017, excluding the pandemic period, with just 217,911 new homes completed in 2024.  
 
This marks a 6% decline from 2023’s total of 231,000 and continues a four-quarter trend of falling completions, according to Energy Performance Certificate (EPC) data. Completions have slowed across all tenures and builder sizes, though affordable housing has remained relatively stable. Planning delays remain a major obstacle, with 88% of developers citing them as a constraint, according to the Home Builders Federation (HBF). 

Beyond delays, the number of homes gaining planning consent remains low. Around 245,000 homes were approved in 2024, in line with 2023, but well below the 370,000 needed annually. While permissions outpaced completions by 12%, the supply gap continues to widen, restricting growth.  

Edinburgh retains top spot for residential investment 
 

Edinburgh has kept its position as the UK’s top city for residential investment, according to Colliers’ analysis.  

The top four cities – Edinburgh, Glasgow, Manchester and London – were unchanged, while Reading climbed six places to fifth, driven by strong start-up growth and a projected 2.5% annual gross domestic product (GDP) increase. Reading also leads in leisure facilities, making it an attractive investment location. 

Andrew White, Colliers’ Head of Residential, said, “After a number of years of turbulence and macroeconomic challenges, it’s interesting for investors to observe that there’s been a period of stability in the UK housing market, with locations that have been sure investments in recent times remaining at the top. The Scottish cities are continuing to top our ranking, most likely due to the affordability and strong economic qualities of the region, as well as the quality-of-life indicators we consider.” 

Rental growth slows to lowest level in over three years 

The pace of rental growth in the UK has slowed to its lowest level in three-and-a-half years, according to Zoopla. 

The average rent for a new let reached £1,284 per month, up 3% from last year, but affordability pressures are keeping increases in check. Zoopla found that while rental market conditions have improved after three years of demand exceeding supply, the shortage of rental homes continues to drive up prices. Rental demand has eased throughout the UK over the past year, with supply increasing everywhere except the West Midlands. 

Richard Donnell, Executive Director at Zoopla, said, “Affordability remains the primary constraint on rental inflation, rather than increased supply and greater choice of homes for rent. We expect rents to increase by 3-4% over 2025 as slower growth in large cities is offset by faster growth in more affordable markets.”  

Nearly 74,000 home movers in England set to miss Stamp Duty deadline 

Thousands of first-time buyers (FTBs) are set to miss out on the current Stamp Duty savings, with Rightmove estimating more than 25,000 property purchases will complete in April rather than before the 31 March deadline. 

From 1 April, the threshold at which FTBs start paying Stamp Duty in England and Northern Ireland will drop from £425,000 to £300,000, while for other buyers, the tax-free band will shrink from £250,000 to £125,000. Rightmove’s analysis, based on properties sold subject to contract and typical transaction timelines, suggests FTBs completing in April rather than March could collectively pay an extra £34m in Stamp Duty. 

Rightmove also estimates nearly 74,000 home movers in England will just miss the deadline, leading to an additional £142m in Stamp Duty payments. The south east has been identified as the region most affected by the changes. 

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission. 

All details are correct at the time of writing (19 March 2025) 

Commercial Property Market Review – March 2025

Regional office investment rebounds as confidence grows 

Investor sentiment in the regional office market has improved, with total investment reaching £2.9bn in 2024, up 10% from 2023, according to Savills.  
 
The Big Six regional cities saw office take-up of 4.6 million sq. ft, 15% above the five-year average and the highest since 2019. Opportunistic investors are targeting repriced assets with strong fundamentals. Overseas investors led the market, accounting for 41% of investment, with French SCPI funds particularly active. Property companies remain key players, representing 32% of investment volumes and many acquisitions are set for alternative use conversion. 

Despite macroeconomic uncertainty, corporate occupiers continue to pay premium rents, with prime rental growth in Greater London and the South East up 8% in 2024. On average, tenants relocating to Grade A offices are paying 69% higher rents per sq. ft than on previous leases, reinforcing the ongoing flight to quality. 

UK commercial property market shifts focus to industrial spaces 

Changing business needs are seeing industrial spaces playing a key role. 

Investment in industrial real estate is also surging. In 2024, UK commercial property investment grew by 20% compared to 2023, with industrial assets leading the way in the fourth quarter, according to Cushman & Wakefield. 

E-commerce and demand for advanced logistics have strengthened the sector, with 2024 take-up levels surpassing those of 2023 and aligning with long-term averages. Technology is transforming industrial spaces, with automation, artificial intelligence (AI) and smart logistics improving efficiency. Warehouses are evolving into high-tech hubs, integrating automated storage and AI-driven inventory management.  

Sustainability is another major focus, as properties must meet stricter energy efficiency standards. By 2030, 80% of commercial buildings could become unlettable unless they achieve an EPC rating of A or B. Landlords are increasingly repurposing industrial spaces, drawing inspiration from flexible residential developments. 

Remote work and sustainability helping to shape UK commercial property trends 

New research from Dutton Gregory highlights key trends in remote work, property valuations and sustainability upgrades. 

Remote working poses the greatest challenge in the commercial property market for 58.9% of survey responders. While hybrid working has increased demand for flexible office space, it has also affected property valuations, which 15% identified as the second biggest challenge. Supply chain disruptions (12%) and economic uncertainty (6.3%) were also concerns, though tenant retention (1.1%) and regulatory changes (1%) ranked lower. 

Sustainability is an increasing priority, with 34.2% planning to invest in solar panels. Renewable energy (30.1%) and EV charging stations (25.1%) are high on the agenda, reflecting growing demand for energy efficiency. In contrast, initiatives like waste reduction (5.5%), green roofs (3.7%) and water conservation (0.8%) received less attention, suggesting a focus on immediate, high-impact solutions over longer-term sustainability measures. 

Retail real estate set for strong year as investment demand rises 
 
Rightmove signals a positive year ahead for retail real estate, with commercial property investment demand surging following a cut to Bank Rate in February.  

Rightmove’s Quarterly Commercial Insights Tracker shows the sector has seen a 28% year-on-year increase in investment enquiries, while leasing demand rose by 6%.  

Retail is now ‘right-sizing’ to align with market needs, according to JLL, as vacancy rates stabilise and economic conditions improve. JLL’s research paper last year noted, ‘The investment market should also benefit from gradually increasing activity, as more investors seek to take advantage of the rebasing of real estate prices, and greater levels of stock on the market. Retail fundamentals appear strong in many markets, creating a powerful case for real estate investors to target the sector. The tide has finally turned, and a new era for the right type of retail has arrived.’ 

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission. 

All details are correct at the time of writing (19 March 2025) 

Advised investors are ‘less vulnerable’

Investors who receive financial advice are four times less likely to be vulnerable than the general population, according to analysis1. 

The study looked at a cohort of more than 5,000 advised investors, assessing them using a psychometric financial wellbeing questionnaire. Designed by an in-house behavioural psychologist, the questionnaire was designed to find and evaluate indicators of vulnerability across aspects such as health, life events, resilience and capabilities. 

Significantly fewer advised clients were found to be highly vulnerable, despite being affected by such events in similar proportions to the general population. 

Less impacted by adverse events  

For example, 41% of advised clients had a health condition or illness, but only 3% said these challenges reduce their ability to carry out day-to-day activities. Similarly, 30% said they’d experienced a difficult life event in the past 12 months, but just 3% showed high vulnerability by saying it prevented them from doing the things they want to. 

Advised investors also enjoy strong financial resilience, with six in 10 saying they feel they can cope with financial challenges. Very positively, almost half feel they are knowledgeable about financial matters, while almost eight in 10 said they were confident in their ability to manage their finances. 

1Dynamic Planner, 2024 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. 

News in Review

“The economy shrank a little in January but grew in the latest three months as a whole” 

The UK economy shrank unexpectedly in January, according to official data released on Friday by the Office for National Statistics (ONS). With a contraction of 0.1%, the economy fared worse at the start of 2025 than analysts had predicted, with the figure seen as a blow to the government ahead of its Spring Forecast later this month. 

Weaker economic performance followed a promising end to 2024, with growth of 0.4% recorded in December. The fall was driven mainly by a decline in the manufacturing sector, while oil and gas extraction and construction also had weak months. At the other end of the spectrum, services including retail recorded positive growth in January. 

Ben Jones, Lead Economist at the Confederation of British Industry, commented, “After a surprisingly strong performance in December, some pay-back was always a possibility in January. But the mixed picture across different sectors in recent months suggests the recovery is still fragile.” 

Boosting growth remains the government’s key priority and the negative data could complicate Chancellor Rachel Reeves’ plans on tax and spending, analysts noted. Responding to the latest growth figures, Reeves said, “The world has changed and across the globe we are feeling the consequences.” 

Liz McKeown, ONS Director of Economic Statistics, added, “The economy shrank a little in January but grew in the latest three months as a whole, with the overall picture continuing to be of weak growth.”  

Stamp Duty deadline dampens housing market 

The looming Stamp Duty Land Tax (SDLT) deadline could be stalling momentum in the housing market, according to the latest UK Residential Property Survey released last week by the Royal Institution of Chartered Surveyors (RICS). 

Buyer demand fell to a net balance of -14% in February, down from -1% in January, making this the lowest such reading since November 2023. Meanwhile, house prices continued to rise (+11%) but at a ‘subdued’ rate, the report noted, though most respondents still expressed the belief that prices would increase in the next 12 months. 

Simon Rubinson, RICS Chief Economist, commented, “The UK housing market appears to be losing some momentum as the expiry of the temporary increase in Stamp Duty thresholds approaches.” 

Side hustlers get tax allowance boost 

Some 90,000 people who work a ‘side hustle’ might soon be exempt from filing a tax return or paying any tax on their side earnings, Exchequer Secretary to the Treasury, James Murray, announced last week. 

The reporting threshold for trading income is likely to be increased from £1,000 to £3,000, a move that will see many people who earn extra fall under the limit. The government claims the move will ‘free up time for taxpayers helping to create the conditions for economic growth,’ but is yet to announce the exact date that the rule change will come into effect.  

Card spending slows but confidence rises 

UK consumer card spending grew by only 1.0% year-on-year in February, according to the Barclays Consumer Spend report released last week, a sizeable fall from January’s 1.9% increase and well below inflation. At the same time, however, confidence in personal finances soared to its highest level since the survey question began in 2015. 

In total, some 75% of consumers say they feel optimistic about their household budgets. Indeed, although essential spending fell in February, discretionary spending proved resilient with 2.1% growth, and spending in the retail sector grew, notably for electronics. Meanwhile, two in five consumers say they found ways to save money. 

Mortgage lending grows in Q4 2024 

Mortgage lending grew substantially in Q4 2024, the Bank of England’s Mortgage Lenders and Administrators Return has revealed, with the outstanding value of residential mortgage loans increasing by 0.5% to £1,678bn. 

As well as rising to the highest total amount since reporting began in 2007, the proportion of lending to high loan-to-income borrowers increased to reach a total of 45.8%. The release also revealed that first-time buyers now make up a market share of 29.6%, the highest since 2007. 

Stricter tests for Personal Independence Payments (PIPs) 

On Tuesday, Work and Pensions Secretary Liz Kendall announced changes to the welfare system aimed at saving £5bn by the end of 2030. She confirmed that payments will go up in line with inflation this year, but the eligibility criteria will be tightened up from November 2026. There will also be a review of the Pip assessment process. 

Here to help 

Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have. 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. 

All details are correct at time of writing (19 March 2025) 

Pension pulse – a reminder for ‘25

Aside from the change announced about bringing unused pension pots into IHT from April 2027, other announcements relating to pensions were thin on the ground during the Budget speech. 

The Chancellor confirmed that the State Pension will increase in line with average earnings, rising by 4.1% in April 2025. The new flat rate State Pension is expected to rise to £230.25 a week, the old basic State Pension is anticipated to rise to £176.45 each week. 

A reminder about current pension allowances and thresholds: 

  • The Annual Allowance (AA) threshold is £60,000 
  • The Money Purchase Annual Allowance (MPAA) and the minimum Tapered Annual Allowance (TAA) are £10,000 
  • The adjusted income threshold for the TAA is £260,000 
  • The Lifetime Allowance and charge have been abolished 
  • The maximum Pension Commencement Lump Sum (PCLS) is £268,275. 

A significant shift 

The end of the IHT exemption for pension pots will prompt some rethinking of retirees’ decumulation strategies as people focus on using their pension for retirement income rather than estate planning purposes. The Chancellor expects 8% of estates will be impacted annually. It really is a significant shift worth planning for. 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning. 

Now here’s a golden anniversary worth celebrating! 

It’s 2025 and we are celebrating the 50th anniversary of the Sex Discrimination Act which, amongst other measures, made it possible for women to get a mortgage without a man’s countersignature. 

It’s a great time to reflect on how far we have come in promoting financial equality between the sexes. In recent years, we have seen further strides. For example, the number of primary (or sole) female mortgage applicants increased from 29% in 2017 to 33% in 20211. 

It’s also a good time to consider the work still to be done  

The gender pay gap, which although narrowing, with many women needing a higher multiple of their annual salary to be able to purchase a home versus men, still presents a home ownership barrier to many women. 

Combine this with the cost-of-living and higher mortgage interest rates over the last few years, and it is unsurprising that many women feel that getting a mortgage is just as out of reach as it was in the 1970s. 

Advice is key 

Don’t be downhearted about your mortgage prospects – we are here to help you explore your options and ensure you have access to all the advice and information you need to make financial decisions with confidence. 

1Habito, 2022 

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

End of tax year IHT recap – gen up on gifting allowances

Recent HMRC data shows that IHT receipts rose to £4.3bn during the period from April to September 2024, a £400m increase on the same period the previous year. 

With 27% of 18 to 34-year olds (1.1 million people) holding out for an inheritance before going ahead with major life events and 12% of UK adults regifting to their children, grandchildren, or other family members, here’s a reminder of the vital gifting numbers to gen up on before the end of the tax year: 

  • You can make gifts worth up to £3,000 in each tax year. These gifts will be exempt from IHT on your death, even if you die within the seven-year period that otherwise applies to lifetime gifts. You can carry forward any unused part of the £3,000 exemption to the following year but if you don’t use it in that year, the exemption will expire. 
  • Certain gifts don’t eat into this annual exemption and don’t give rise to IHT, e.g. wedding gifts of up to £5,000 for a child, £2,500 for a grandchild (or great grandchild) and £1,000 for anyone else. Individual gifts worth up to £250 per year per recipient are also IHT free. 

While these are relatively small sums, you should use these up where possible without compromising your own financial security, to gradually reduce your overall estate. A settled pattern of gifts from surplus income can also be made. Conditions apply, and advice would be needed to ensure that the gifts are made and evidenced in the right way. 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.