Category: news

Many of us will experience periods of stress in our lifetime. Whether it’s short-lived or more prolonged, some level of stress is perhaps an inevitable part of life.

In fact, a study cited by Priory Group (16 September 2026) found that 74% of UK adults became so stressed within one year that they felt overwhelmed and unable to cope.

Wherever stress comes from in your life, it can significantly impact both your physical and mental health, as well as your financial wellbeing. But by taking steps to prevent, reduce, and manage your stress, you can protect yourself and enjoy life more.

To mark World Mental Health Day on 10 October 2026, this guide offers six tips to help you combat stress in your everyday life.

Download your copy here: 6 top tips for reducing stress for World Mental Health Day

If getting your finances in order is a priority for reducing stress, we could help you devise a strategy to achieve your short- and long-term goals. Please don’t hesitate to get in touch if you’d like to arrange a meeting.

Please note: This guide is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing (August 2026) and is subject to change in the future.

The chancellor, John Healey, has delivered the 2026 Autumn Budget. It included wide-ranging changes that will affect people of every age and from all walks of life. 

Healey upheld many of Rachel Reeves’ commitments, including a pledge not to increase taxes on “working people” and a commitment to meeting the Labour Party’s self-imposed fiscal rules.

He also introduced a wide range of new measures, while rowing back on a key policy introduced by the former chancellor: the proposed reduction in the annual Cash ISA (Individual Savings Account) contribution limit from £20,000 to £12,000.

In this update, you’ll learn more about the key announcements that will affect both household and business finances.

Many of Reeves’ tax measures are being upheld

Healey said that Labour was keeping its promise not to increase taxes on working people.

In keeping with the Labour Party manifesto, Healey announced no further increases to the main rates of tax for individuals and businesses.

The taxes staying at their current rates for 2027/28 are:

• Dividend Tax
• Inheritance Tax (IHT)
• Capital Gains Tax (CGT)
• National Insurance
• The standard rate of VAT
• Corporation Tax (except for banks)
• Income Tax (with the exception of some savers and landlords)

In addition, existing “stealth taxes” – where tax-efficient thresholds are frozen instead of rising year-on-year – remain in place until 2031:

• The Personal Allowance of £12,570
• Income Tax thresholds 
• The IHT nil-rate bands

The previously announced inclusion of most unused pension funds and pension death benefits within the scope of IHT will proceed from 6 April 2027.

New ISA announcements including a reversal of the Cash ISA limit reduction

A raft of changes and proposals were announced regarding ISAs:

• The decision to cut the amount under-65s could save into Cash ISAs from £20,000 to £12,000 has been reversed.
• A new First-Time Buyer ISA will replace the Lifetime ISA (LISA) from April 2029 for new savers and will allow contributions of up to £4,000 per year with a 25% government bonus. The Budget document says: “The bonus will be paid on the value of the account balance when funds are withdrawn for a qualifying first home purchase, up to the value of £450,000, so avoiding the need for any withdrawal charge. The new product will have no upper age restriction.”
• Savers who already have a LISA will be able to continue contributing to it.
• Healey also pledged to deal with the so-called LISA penalty, reducing the withdrawal charge from 25% to 20% for first home purchases above £450,000 that meet the other qualifying rules. This removes the penalty on savers’ original contributions. Other unauthorised withdrawals will retain the 25% charge. 
• The government will investigate introducing a new ISA to reward first-time investors.

Healey announced further Income Tax increases for landlords and savers

Income Tax will rise by a further two percentage points for taxable property income for landlords in England, Wales, and Northern Ireland. 

The same increase will potentially apply to savings interest outside of an ISA that surpasses an individual’s Personal Savings Allowance (PSA), which stands at:

• Basic-rate taxpayers: £1,000
• Higher-rate taxpayers: £500
• Additional-rate taxpayers: £0

The Income Tax rate was already set to go up by two percentage points in April 2027 for those who meet the criteria, so this reform brings the total increase to four percentage points. 

The ordinary rates for Income Tax in England, Wales, and Northern Ireland are:

• Basic rate: 20%
• Higher rate: 40%
• Additional rate: 45%

From 6 April 2027, for taxable property income and on qualifying savings interest, the rates will stand at:

• Basic rate: 24%
• Higher rate: 44%
• Additional rate: 49%

The Budget document states that 84% of Income Tax payers will be unaffected by the property and savings income changes in 2027/28. 

Important changes for those starting, growing, and selling their businesses

The chancellor placed a heavy focus on business owners in the Budget.

New business owners and newly self-employed people

• A new Young Entrepreneurs Allowance pilot in England will provide successful applicants with support towards their living costs during their first year in business.
• The existing Trading Allowance will increase from £1,000 to £3,000 from 6 April 2027, allowing individuals to receive up to £3,000 a year in qualifying trading and miscellaneous income tax-free.
• The British Business Bank will double its investment commitments to women-led businesses and funds to £200 million.

Those growing their business

• From April 2029, Self Assessment taxpayers who make payments on account will make smaller, more regular payments towards their tax bill.
• Also from April 2029, eligible self-employed fathers and partners in Great Britain will receive two weeks’ parental pay, currently worth up to £194 a week.
• The government will reform how payments from companies to individual shareholders are taxed, reducing opportunities to extract profits at more favourable tax rates.
• From April 2027, qualifying retail, hospitality, and leisure properties in England with a rateable value of up to £18,000 will qualify for full Small Business Rates Relief, up from £12,000. Tapered relief will extend to £21,000, up from £15,000. 

For those disposing of business assets, the Budget presented a mixed bag

The chancellor announced a new Founders’ Relief, offering a 10% CGT rate on qualifying share disposals from 6 April 2027, subject to a £10 million lifetime limit.

The relief will target founders and significant early investors in high-growth, innovative UK companies. Detailed eligibility rules are being consulted on, including conditions relating to employees, turnover, growth, and research and development.

Healey also announced that the lifetime limit on gains qualifying for Business Asset Disposal Relief (BADR) will fall from £1 million to £500,000 from 6 April 2027. The Budget document says three in four BADR claimants will still receive relief on their entire gain.

Separately, the government plans to reform non-compete clauses to make it easier for businesses to recruit and for employees to move jobs.

The chancellor reaffirmed previously announced State Pension changes

The triple lock will be reformed from 2030

Honouring a manifesto promise, the chancellor confirmed that the triple lock will remain for the duration of this parliament. 

As previously announced at the Labour Party Conference, it will, however, be adjusted from April 2030, when the State Pension will rise by the highest of inflation (as measured by the Consumer Prices Index), 2.5%, or the amount needed to maintain its value relative to earnings. This means it will track earnings growth over time.

The changes are projected to save £15 billion a year by the end of the 2030s, and £50 billion a year by 2050 with the savings used to fund the National Care Service in England, announced by the prime minister in September.

A new Pension Tax Allowance will protect pensioners as the full State Pension rises above £13,000

The full new State Pension will rise by 3.9% in April, bringing full payments above the Personal Allowance. This will bring payments for those eligible for the full amount to approximately £250.70 a week, up from £241.30 in 2026/27.

The increase will see the full new State Pension rise above the Income Tax Personal Allowance of £12,570 a year for the first time. Previously, the government said that pensioners whose total income is no higher than the full new State Pension would not pay Income Tax, and this promise was upheld by the chancellor.

The government will, therefore, introduce the Pension Tax Allowance (PTA), ensuring that pensioners whose total income is up to the value of the full new State Pension will not pay Income Tax. The allowance will apply from 6 April 2027 until April 2030, at which point further arrangements will be considered.

More help for first-time buyers

With many aspiring homeowners struggling to get on the property ladder, Healey announced the Your First Home scheme for eligible first-time buyers purchasing qualifying new-build homes in England.

The scheme will offer a government equity loan worth 20% of the purchase price, with buyers needing a deposit of at least 2.5%. The loan will be interest-free for five years. Household income limits and local property price caps will apply.

Applications are expected to open in February 2027, with the first purchases taking place from April 2027.

Healey announced further support with household energy bills

Continuing his focus on giving families “breathing room”, the chancellor announced several measures to help households with their energy costs.

VAT reduction on energy costs

The temporary reduction in VAT on domestic electricity from 5% to 0% will be extended for three months, until 1 July 2027. The government expects this extension to take around £50 off the annual Ofgem price cap from April 2027.

Household Energy Payments

Households in council tax bands A to D in England will also receive a £100 Household Energy Payment from January 2027. Delivered through local authorities, the payment is expected to support up to 20 million households.

The devolved governments will receive funding to enable them to provide similar support.

Removing the standing charges on gas bills

Healey also announced plans to remove gas standing charges from domestic bills in Great Britain, aiming for delivery by the end of 2027 or as soon as possible afterwards.

Gas standing charges currently average £108 a year. However, these costs will move into gas unit rates, so removing the standing charge will not mean every household saves £108. The impact will depend on gas consumption, with targeted support planned for households adversely affected.

An extension to the fuel duty cut

The 5p cut and freeze on fuel duty will be extended until 1 July 2027.

The government also committed to:

• Reforming electricity standing charges, with details due in 2027
• Scrapping the planned Gas Shipper Obligation, which would have added costs to gas bills to fund hydrogen projects. These projects will instead receive government funding.

An increase to the National Minimum Wage and National Living Wage

As with the State Pension, the National Minimum Wage and National Living Wage will rise by 3.9% next April.

HMRC will receive “new powers” to claim tax from those who do not pay

The chancellor announced measures to close tax loopholes and recover unpaid tax.

These include reforms to how company payments to individual shareholders are taxed, reducing opportunities to extract profits at more favourable tax rates. From April 2029, Self Assessment taxpayers who make payments on account will also make smaller, more regular payments towards their tax bill.

From July 2029, HMRC will gain powers to recover lower-value tax debts through regular instalments directly from the bank accounts of individuals and companies who can afford to pay but repeatedly fail to do so. Safeguards will be developed before the powers are introduced.

Additional Budget measures that could affect you, your family, and your business

• An end to the Carer’s Allowance “cliff edge”. From 2030/31, the government plans to introduce a taper in England and Wales, so unpaid carers will no longer lose their entire Carer’s Allowance simply for earning a penny over the Weekly Earnings Limit. 
• The removal of import tariffs on household staples and farming goods. “Family favourites” including baked beans, chocolate, and gherkins will see import tariffs removed. This will extend to some fertilisers and kerosene heating oil, helping households and farmers facing high bills. 
• Investment of up to £5 million a year (for three years from 2027/28) in children’s organisations, such as Dolly Parton’s Imagination Library, which gives books to children.
• The introduction of a Misogyny Prevention Fund to support the government’s ambition to halve violence against women and girls.
• Welfare reforms. These will include a huge number of changes, to be set out in a white paper in 2027.
• Helping drivers with tax-free mileage rates. The rate for the first 10,000 qualifying business miles in an employee’s or self-employed person’s own car or van will remain at 55p a mile, following the temporary increase in May. For business mileage above 10,000 miles, the rate will rise from 25p to 35p a mile.

A temporary increase to the tax surcharge on banks

Healey announced a temporary increase to the existing Bank Corporation Tax Surcharge, pushing it up from 3% to 6% for 15 months from 1 January 2027 to 31 March 2028.

This increase was lower than some in the banking sector had expected, with reports suggesting a return to 8%.

The government is investing in AI and has increased the defence budget

The chancellor is extending an additional £10 billion of aid to Ukraine, and expects to spend 3.5% of GDP on defence by 2035.

As part of its push for national security, the government will also increase its investment in AI.

Commenting that “we are already world leaders in AI safety and security”, Healey announced around £500 million to strengthen AI security and resilience, alongside an additional £140 million for the Sovereign AI Unit.

In practice, the chancellor said this investment will include:

• New data centres, to keep data on British soil, including for the NHS and armed forces
• A Data Centre Covenant to create local jobs and protect the UK’s water supplies.

GDP, national debt, and inflation

As always, the chancellor announced the latest figures from the Office for Budget Responsibility (OBR).

Rising costs, along with the associated higher interest rates, have affected families and businesses, as well as the government. 

OBR figures show the UK government will spend an average of £14 billion more a year on debt interest, compared to its March 2026 forecast. Healey explained he aims to reduce government borrowing to cut interest payments. 

In the forecast, public sector net financial liabilities compared to GDP is predicted to be: 

• 83.2% in 2026/27
• 83.8% in 2027/28 and 2028/29
• 83.1% in 2029/30
• 82.3% in 2030/31
• 81.7% in 2031/32

The previously speculated recession has not materialised. In fact, in the first half of 2026, the UK economy was the joint fastest-growing in the G7, along with the US.

Looking ahead, the OBR expects GDP to increase by:

• 1.2% in 2026
• 1% in 2027
• 1.6% in 2028
• 1.8% in 2029
• 1.7% in 2030
• 1.6% in 2031

While the OBR data indicates there is pressure on the government’s budget, Healey said the headroom established last year to absorb the impact of the Iran war means that taxes will not increase for working people. 

Devolution will be a priority for this government

Healey stated that local leaders should not have to come “cap in hand” to Westminster to fund infrastructure projects in their region. With this in mind, the Budget set out a roadmap to fiscal devolution.

The government will introduce a Good Growth Fund, providing £285 million in transitional seed funding to local leaders for 2027/28.

Separately, from April 2028, a £1.5 billion borrowing facility will be available to Mayoral Strategic Authorities in England to support local growth projects. Devolved governments will receive additional funding through the Barnett formula.

Together, it is hoped these measures will promote growth.

Please note

All information is from the Budget documents on this page.

The content of this Autumn Budget summary is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice. 

While we believe this interpretation to be correct, it cannot be guaranteed, and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement.

Tax treatment depends on your individual circumstances and may be subject to change in the future. If you are unsure of your tax position, you should seek independent professional advice.

Following Sarah Britton’s big birthday celebrations, this month it’s the turn of our director, Dan Britton, to blow out the candles and enjoy being the centre of attention for a day.

A fabulous day with family

On 1 October, Dan turned 49, and he chose to spend the day locally with his family. 

He and Sarah took the kids to a restaurant in Bristol, where they enjoyed plenty of good food, chat, and laughter. 

Dan said, “We all had a great time. I love being together as a family on my birthday. It was a really relaxed day. As it’s my big birthday next year and we’re planning something special, I wanted to do something low-key near home this year – and it worked out just as I hoped.”

A trip to the rugby

The Brittons are keen sports fans, so, as part of his birthday celebrations, Dan took the kids to watch their first Bristol rugby game at the weekend. 

He loved introducing them to one of his favourite sports. Dan said, “The kids were great. They really enjoyed the game and the atmosphere of being in the stadium. 

“It was a real bonus that we had a great win. The Bristol Bears beat the Northampton Saints – the reigning champions – 41-26!

“We all came away very happy. It was the perfect way to round off my birthday week. 

“I’m really excited for next year too. We haven’t quite decided what to do, but we’ll push the boat out a bit for the big 5-0.” 

Get in touch

If you’d like to learn more about the Blue Wealth team and how we can support you with all your financial planning needs, we’d love to hear from you.

To find out more, please email hello@bluewealth.co.uk or call us on 0117-332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Halloween is just weeks away on 31 October. For those approaching retirement, the genuinely frightening things are not monsters under the bed or zombies at the window – they are scary tax traps that could disrupt your plans for this exciting new life chapter.

Seemingly minor financial decisions made just before or during retirement could trigger unnecessary Income Tax, increase your estate’s Inheritance Tax (IHT) liability, or reduce your ability to grow your pension pot tax-efficiently. 

Fortunately, with the right support, advice, and planning, you could avoid these frightful mistakes and protect your retirement funds from avoidable tax.

Read on to discover four common tax traps that catch people out in the run-up to retirement and learn how timely financial advice could help you keep tax nightmares at bay.

1. Exceeding available tax-free allowances for pension withdrawals

You can usually access workplace and private pensions from age 55 (rising to 57 from 6 April 2028). This could provide a valuable source of income before or after you retire. 

However, it’s crucial to understand the tax implications of drawing on your pension.

While the first 25% of your pension pot is typically tax-free up to a limit of £268,275 (the Lump Sum Allowance, or LSA), the taxable portion of your pension is normally subject to Income Tax at your marginal rate. It’s important to note that the 25% threshold applies to your total pension savings, not each individual scheme. Therefore, if you take a lump sum from several pensions without checking how much of your allowance remains, you could be in for a fright when your next tax bill arrives.

You or your beneficiaries may be eligible to take a tax-free lump sum of up to £1,073,100 in certain circumstances, for example, if funds are paid out due to serious illness. This is known as the Lump Sum and Death Benefit Allowance (LSDBA). If you withdraw more than this, you’ll need to pay Income Tax on the amount that exceeds the allowance.

Your LSA and LSDBA may be higher if you hold a protected allowance. It’s worth using the government’s free online tool to check your allowances before planning your pension withdrawals. 

2. Triggering the Money Purchase Annual Allowance

The standard pension Annual Allowance for the 2026/27 tax year is £60,000, which is the maximum that can be contributed to all private and workplace pensions before a tax charge applies. However, if you start making flexible withdrawals of taxable money from a defined contribution (DC) pension, this triggers the Money Purchase Annual Allowance (MPAA).

The MPAA caps the amount you and your employer can contribute to DC pensions in a single tax year without incurring an Annual Allowance tax charge at £10,000. Moreover, once the MPAA has been triggered, it remains in place for life.

As such, if you want to continue topping up your pension after accessing it – for example, because you plan to keep working or running a business – it’s important to factor this into your financial plan. 

3. Losing the Personal Allowance: the 60% tax trap

For 2026/27, most people have a Personal Allowance of £12,570. This is the amount of income you do not have to pay tax on. 

However, your Personal Allowance is reduced by £1 for every £2 that your “adjusted net income” (total taxable income before any Personal Allowances and less certain tax reliefs) exceeds £100,000 in a single tax year. You lose your Personal Allowance altogether if you earn £125,140 or above.

As income between £100,000 and £125,140 falls into the higher-rate Income Tax bracket (40%), for every £100 you earn within this range, you’ll pay £40 Income Tax and lose another £20 due to the tapered Personal Allowance. This creates an effective marginal rate of 60% (or 67.5% in Scotland).

Taxable pension withdrawals count towards adjusted net income. So, if you take a large lump sum from your pension, this could push your total income over £100,000, triggering the 60% rate.

Instead, consider spreading taxable withdrawals across tax years, using available allowances and reliefs, and coordinating your pension income with other sources of income.

4. Failing to prepare for upcoming changes to Inheritance Tax on pensions

Currently, unused pension funds are usually exempt from IHT, making them an effective way to pass wealth on tax-efficiently. 

However, from 6 April 2027, most unused pensions and death benefits will be included in the value of your estate for IHT purposes.

This is a major reform which could have a significant impact on your retirement and estate plans. 

Indeed, failing to review and update your plans in line with the new rules could leave your family facing an unexpected – or higher-than-expected – IHT bill, reducing the amount of wealth they receive.

There could be further changes to tax legislation announced in John Healey’s first Budget on 28 October. Keep an eye out for our update on the day to find out whether there are any reforms that could affect your long-term financial plan.

We can help you keep your retirement wealth as tax-efficient as possible

Retirement should be a time to enjoy the wealth you’ve worked hard to build over the years, not to be haunted by avoidable tax bills.

However, navigating tax rules and effectively coordinating different sources of income can be frighteningly complex.

We can help you identify potential tax traps and take steps to avoid them before they become a problem.

Our financial planners can use sophisticated software to model different income strategies, allowing you to make informed decisions and keep more of your wealth working for you.

To find out more about how we can help you plan financially for retirement, please email hello@bluewealth.co.uk or call us on 0117-332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth is not responsible for the accuracy of the information contained within linked sites.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, cashflow planning, or tax planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

Workplace pensions are regulated by The Pensions Regulator.

One of the Blue Wealth team had a “big” reason to celebrate last month.

On 12 August, Sarah Britton, our client services coordinator, had a milestone birthday. Here’s how she and her husband Dan – one of our directors and a Chartered financial planner – marked the occasion.

Sarah kicked off the celebrations with a holiday to Spain

Sarah started the celebrations early with a holiday to Bilbao in June. She and Dan enjoyed a long weekend in this vibrant city in the Basque Country of northern Spain.

They stayed in a fantastic hotel that overlooked the Guggenheim Museum. During their trip, Sarah and Dan took in the sights on an open-top bus ride and visited some of the city’s cultural highlights, including the iconic contemporary art museum and the Museum of Fine Arts.

Read more about their holiday in your August team update from Blue Wealth.

On her birthday, Sarah enjoyed time with her family

Sarah said, “We went for lunch with family at Bravas, a Spanish tapas restaurant in Bristol. It’s a lively venue serving the tapas classics we love, such as tortilla and boquerones.

“After our trip to Bilbao, we thought it would be fun to carry on the Spanish theme, and it meant we got to enjoy all the delicious dishes we’d discovered on our holiday.

“It was a real bonus that my birthday coincided with the partial solar eclipse. We headed over to Sand Bay Beach in the evening to watch it, and the weather was beautiful; very sunny and warm. It was lovely sitting on the beach in the sun wearing my ‘solar specs’ and watching the moon change.

“We all had a fantastic day and made special memories as a family.”

The celebrations continue…

As this was a particularly special birthday, Sarah is spreading her celebrations out to make them last as long as possible, and who can blame her?

She is looking forward to several spa days and meals with friends over the next few months.

“I’ve loved spending time with friends and family and feel truly spoilt. I can’t wait for my next ‘big’ birthday if I get to do all this again!”

Get in touch

If you’d like to learn more about the Blue Wealth team and how we can support you with all your financial planning needs, we’d love to hear from you.

To find out more, please email hello@bluewealth.co.uk or call us on 0117-332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Estate planning is often viewed as something to address later in life, but research reported by Today’s Wills & Probate shows the true value of starting early.

According to the study, families in the top 10% of UK wealth could pass an average of £397,000 more to their loved ones if they begin estate planning at age 50 instead of waiting until age 70.

The reason for this is simple: it all comes down to time.

The earlier you begin, the more opportunity you have to understand your options, make well-considered decisions, and implement tax-efficient strategies.

Crucially, estate planning is not a set-and-forget job. It’s a flexible, long-term plan that should evolve alongside your changing circumstances. Keep reading to learn why people put estate planning off and the real-world benefits of starting earlier.

Emotional and psychological barriers often prevent people from taking action on their estate plans

Research from Octopus Investments shows that UK adults believe estate planning should ideally occur before age 44. Yet, financial advisers report that the average client doesn’t actually take action until age 61.

It’s completely normal to feel hesitant about taking the first step. After all, estate planning touches on deeply personal topics, and several emotional and psychological barriers could get in the way.

• Facing reality: Knowing you’re getting older and planning for your family’s life after you’re gone can feel uncomfortable, leading you to procrastinate.
• Overconfidence: It’s easy to assume that “serious” planning is a task for your future self to handle, but it’s easy to underestimate how quickly time passes.
• Fear of losing control: You may worry that transferring assets or setting up structures will restrict your financial independence during your lifetime.
• Navigating sensitive family conversations: Discussing money, inheritance, and personal wishes may feel daunting or awkward.

Fortunately, recognising these psychological barriers is often the hardest part. Seeing them means you can overcome them, and working with a financial planner can help make the process empowering rather than daunting.

Read more: 5 important estate planning conversations to have with your loved ones

Early estate planning opens up significant financial and personal benefits

Starting your estate planning in the middle of your life, rather than towards the end of it, offers several practical advantages. You simply cannot replicate these at short notice later in life.

Here are four to consider.

1. You will have more time to reduce a potential Inheritance Tax (IHT) liability

Early planning allows you to make full use of annual gifting allowances and the seven-year rule for potentially exempt transfers (PETs). This means you can gradually move assets out of your taxable estate.

Under 2026/27 tax rules, every individual has a standard nil-rate band of £325,000 and a residence nil-rate band of up to £175,000 when passing a main residence to direct descendants. Anything above these thresholds is typically taxed at 40%.

However, if you survive for seven years after making a PET (a gift made in your lifetime), it will fall outside of your estate for IHT purposes. If you pass away within seven years, taper relief may reduce the tax payable on gifts exceeding your nil-rate band.

You can also utilise annual gifting exemptions, such as the annual £3,000 tax-free allowance or make regular gifts out of surplus income. These are immediately exempt from IHT if you structure them efficiently.

This can be a complex area of estate planning, so be sure to speak to your planner for comprehensive advice.

Read more: Inheritance Tax myths busted. Here are 5 facts you need to know

2. You can enjoy greater flexibility in your planning

Starting early gives your investments and trust structures decades to compound and adjust, allowing you to handle changing tax legislation or market shifts with ease. Moreover, you’ll have the flexibility to adapt if UK tax thresholds or rules change, whereas late-stage planning leaves little room to pivot.

For example, if you place £200,000 into an appropriate trust structure early, any subsequent investment growth over two decades accrues inside the trust, rather than increasing your taxable estate.

3. You will be protected throughout your lifetime

Estate planning is not only about what happens after you pass away. An important aspect that can support your wishes during life is setting up Lasting Powers of Attorney (LPAs). This ensures that trusted loved ones can manage your health and financial affairs if you ever lose mental capacity.

The two LPAs to consider are:

• Health and Welfare LPA: This covers decisions regarding your daily care, medical concerns, or life-sustaining treatments.
• Property and Financial Affairs LPA: This covers managing bank accounts, paying bills, collecting benefits or pensions, and selling property.

Establishing both LPAs while you are young and healthy ensures those you trust can handle your affairs.

4. You can avoid stressful last-minute decisions

Rushed, later-stage estate planning can lead to costly mistakes, missed tax allowances, or unnecessary emotional stress for your family during an already difficult time.

For example, the residence nil-rate band tapers away by £1 for every £2 that an estate exceeds £2 million. Without early planning, an estate worth £2.4 million could completely lose the benefit of this allowance.

Take your next step towards a more secure financial legacy

Building a comprehensive estate plan gives you control over your future and ensures that your wealth supports the people and causes you care about, even when you’re gone.

Whether you need to review an existing strategy or start from scratch, we’re here to help guide you through every stage of the process.

To get in touch with us, please email hello@bluewealth.co.uk or call us on 0117-332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth is not responsible for the accuracy of the information contained within linked sites.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

Remember that taper relief only applies to gifts in excess of the nil-rate band. It follows that, if no tax is payable on the transfer because it does not exceed the nil-rate band (after cumulation), there can be no relief.

Taper relief does not reduce the value transferred; it reduces the tax payable as a consequence of that transfer.

The Financial Conduct Authority (FCA) does not regulate estate planning, will writing, tax planning, or trust advice.

This month, we have something a little bit different to share with you.

We’re excited to announce the details of a new event you’re invited to, hosted by Studio 74 in Bristol.

Keep reading to find out more.

Save the date for an exclusive “meet the artist” afternoon

On Saturday 19 September, you’re invited to an afternoon (1 pm to 3 pm) with acclaimed artist Todd White at Studio 74.

The gallery describes Todd as “one of the most celebrated figurative artists of our time, renowned for his instantly recognisable style and sharp observations of modern life […] his works combine glamour, humour, and storytelling, capturing characters and moments that define our social world.”

Todd’s work is in demand from collectors worldwide, and he’s a firm favourite with celebrities such as Abbey Clancy, Catherine Zeta-Jones, and Sylvester Stallone.

His work features bold, vibrant colours, incorporating elements of pop culture and everyday life.

Explore his collection on the Studio 74 website and learn more about the artist.

Studio 74 is an elegantly designed space founded by Ellena at 24, four years ago. It’s designed to make art collecting accessible and immersive. You’ll find it at 74 Whiteladies Road, Bristol.

RSVP to Studio 74 to secure your place

Please check your inbox for your invitation to the event.

We’re expecting this to be popular, so book your place now to avoid missing out. Please RSVP directly to the gallery so they can keep an eye on numbers.

We look forward to seeing you there.

Keeping your wealth as tax-efficient as possible is one of the foundations of effective financial planning. This not only means making the most of allowances and reliefs currently available but also understanding how tax rules are changing and preparing for the potential impact on your finances.

With significant tax reform due to take effect from 6 April 2027, now is the time to act.

However, research suggests that many people are poorly informed about the upcoming changes. A survey by Standard Life reveals that 9 out of 10 UK adults are unaware of the proposed reforms to Inheritance Tax (IHT) on pensions. At the same time, FTAdviser recently reported warnings of “serious confusion” surrounding changes to the annual subscription limit for Cash ISAs.

Keep reading to learn about three important tax changes planned for April 2027 and discover practical steps you could take now to prepare.

1. Most unused pension funds will no longer be exempt from Inheritance Tax

When someone dies, their beneficiaries could face an IHT bill if the value of the deceased person’s estate (their money, property, and possessions) exceeds certain thresholds. Where IHT applies, any amount above these thresholds is normally charged at 40%.

Currently, unused pension funds and death benefits are generally exempt from IHT, making them a valuable estate planning tool for passing wealth on tax-efficiently.

However, from 6 April 2027, most unused pension wealth and death benefits will be included in your estate for IHT purposes. This could push the value of your estate over – or further over – the available thresholds, increasing the amount of IHT payable. As such, your loved ones may receive less of your wealth than you intended.

You’ll still be able to pass pension wealth to your spouse or civil partner without triggering an IHT charge. Also, some pensions are exempt from the new rules, including defined benefit pensions and death in service benefits from employer Group Life schemes.

How to prepare:

• Speak to a financial planner – They can help you understand your estate’s IHT liability under the new rules and identify strategies for reducing it.
• Consider spending your pension earlier – Once the IHT exemption on most unused pensions is removed, preserving this wealth to pass on will offer fewer tax benefits. Instead, you could reduce the value of your estate for IHT purposes by enjoying your pension wealth now.
• Give lifetime gifts – Use your annual gifting allowances to pass on some of your wealth IHT-free. A financial planner can advise you on how to manage this effectively without compromising your preferred lifestyle.
• Invest in life insurance – If you can’t avoid an IHT charge altogether, think about taking out life insurance that your family could use to pay the bill. Placing your insurance in a trust could protect any payout from IHT and ensure your family receives the money as quickly as possible.

2. The annual contribution limit for Cash ISAs is being reduced for under-65s

In the 2026/27 tax year, you can contribute up to £20,000 to a single ISA or across multiple accounts. Using your full annual allowance is a simple and effective way to save and invest tax-efficiently.

However, from 6 April 2027, you might need to rethink your ISA strategy because the Cash ISA subscription limit is set to drop to £12,000 for under-65-year-olds.

The good news is that your overall ISA allowance will remain at £20,000. As such, you could still benefit from tax-efficient savings and investments up to this amount by putting £12,000 in a Cash ISA and £8,000 in a different type of ISA, such as a Stocks and Shares ISA.

How to prepare:

• Make the most of your 2026/27 allowance – If maximising your cash savings is a priority, be sure to contribute your full £20,000 before 6 April 2027.
• Research alternatives to your Cash ISA – Speak to a financial planner who can help you understand how other types of ISA work. Setting up an account and familiarising yourself with it now means you’ll be prepared to make full use of your annual ISA allowance when the new cash cap comes into effect.
• Leave funds invested in your Cash ISA – Any amount you save before 6 April 2027 is fully protected and your current balance will continue to earn interest free from Income Tax and Capital Gains Tax. If you take money out and then decide to put it back in, this will count towards your new, lower £12,000 Cash ISA limit and you’ll lose the tax-free protection on any amount over this.

Read more: ISA rules are changing: Here’s everything you need to know

3. Income Tax on savings and property is set to rise

If you earn interest on savings held outside an ISA or receive rental profits from property, you could face a higher tax bill in the 2027/28 tax year.

That’s because Income Tax rates for savings and property income will rise by two percentage points from 6 April 2027. This means:

• The basic rate will increase from 20% to 22%
• The higher rate will increase from 40% to 42%
• The additional rate will increase from 45% to 47%.

How to prepare:

• Review how the new rates could affect your tax liability – A financial planner can use estimates of your taxable savings interest and rental income to model the impact on your overall tax bill. This understanding could help you identify measures for mitigating it.
• Maximise tax-efficient savings and investments – Consider moving taxable savings into ISAs or Premium Bonds (which offer the chance to win tax-exempt cash prizes instead of traditional interest).
• Review your pension contributions – Increasing your payments could reduce your overall adjusted net income, keeping you in a lower Income Tax band.

Get in touch

To find out more, please email hello@bluewealth.co.uk or call us on 0117-332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth is not responsible for the accuracy of the information contained within linked sites.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate cashflow planning or tax planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Investing in buy-to-let property can provide a steady rental income, helping supplement your retirement fund or form part of the legacy you leave for loved ones.

Statistics published by the government (29 August 2025) confirm that there were around 2.86 million private landlords in the UK in 2023/24.

Since then, the property landscape has changed, with the introduction of the Renters’ Rights Act 2025 and increased regulatory responsibilities for landlords.

However, buy-to-let remains a viable option for many. In this guide, you’ll find the pros and cons you’ll need to consider and some important questions to ask yourself.

Download your copy here: The pros and cons of investing in buy-to-let

If you have any questions about whether investing in a buy-to-let property might be right for you, please get in touch.

Please note: This guide is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing (June 2026) and is subject to change in the future.

The Financial Conduct Authority does not regulate buy-to-let (pure) and commercial mortgages. Your property may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

As much as we love what we do, the Blue Wealth team also enjoys its time off. Our holidays give us the opportunity to recharge and rest, so we can give our best at work.

For most of us, travelling and spending time with family is one of our favourite things to do when we have time away from the office.

This month, Dan and Sarah took a week off to explore the wonderful city of Bilbao in northern Spain.

Keep reading to find out how they got on.

Birthday celebrations in a lively, friendly city

To celebrate Sarah’s birthday, she and Dan jetted off for a long weekend in Bilbao on Saturday 18 June.

As the largest city in the province of Biscay and the Basque Country, Bilbao is a lively and bustling destination with lots going on. While it’s highly populated and built-up, the city is also surrounded by mountains and has a rich historical heritage.

Sarah and Dan stayed at a fantastic hotel that overlooked the Guggenheim Museum – one of Bilbao’s cultural highlights and the reason why many tourists visit.

They enjoyed a trip to this iconic contemporary art museum, which was designed by architect Frank Gehry and has about 24,000 square metres of space organised around a spectaculaTeam updater atrium.

The Guggenheim Museum Bilbao

“We also went to the Museum of Fine Arts, took an open-top bus ride around the city, and did plenty of walking and eating. The pintxos were a local snack, a bit like a mini open-faced sandwich, and they were delicious.

“The weather was a bit changeable, but it was ideal for sightseeing and warm enough to sit outside most of the time.

“Over three nights, we packed a lot in and had a fantastic time. I’d highly recommend Bilbao, and we’d definitely return because there was so much to see and do that we couldn’t squeeze it all into our short trip.”

Get in touch

If you’d like to learn more about the Blue Wealth team and how we can support you with all your financial planning needs, we’d love to hear from you.

To find out more, please email hello@bluewealth.co.uk or call us on 0117-332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.