Estate planning for the 2026/27 tax year: key dates and what to review
Why review your estate plan this tax year?
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. It falls between two big inheritance tax changes, so it is a good time to check your will and plans still work.
Business and farm relief changed in April 2026, and most unused pensions will count towards inheritance tax from April 2027. The main tax-free allowances stay frozen, so rising house prices bring more families into tax each year.
Key figures for 2026/27
| Allowance | 2026/27 |
|---|---|
| Basic inheritance tax allowance | £325,000, frozen until April 2031 |
| Home allowance | Up to £175,000, reduced for estates over £2 million |
| Full business and farm relief | First £2.5 million, then 50% |
| Annual gift allowance | £3,000, plus one unused year |
| Small gifts | Up to £250 per person |
| Capital gains tax allowance | £3,000, with rates of 18% and 24% |
Check where you stand with our inheritance tax calculator.
Key dates to know
Some changes have already happened and some are on the way. These are the dates that matter.
- 6 April 2026 – full business and farm relief capped at £2.5 million. See our business and farm relief guide.
- 5 April 2027 – last day to use this year's £3,000 gift allowance, plus any unused allowance from last year.
- 6 April 2027 – most unused pensions start to count for inheritance tax. See our pensions guide.
- 5 April 2031 – the main tax-free allowances stay frozen until at least this date.
Make use of this year's allowances
Some allowances are "use it or lose it". Using them each year can steadily reduce the value of your estate.
- £3,000 a year – tax-free, or £6,000 for a couple.
- Small gifts – up to £250 per person, to as many people as you like.
- Wedding gifts – up to £5,000 to a child, £2,500 to a grandchild and £1,000 to anyone else.
- Regular gifts from spare income – no limit, as long as your standard of living is not affected.
Keep a note of each gift: the date, who received it and how much. Giving property or shares instead of cash can trigger capital gains tax, so check first. Our guide to gifting money to family explains the rules.
Review your documents
Your own paperwork also needs to keep up with your life.
- Your will. Marriage, divorce, a new child or a house move can all affect it, and getting married cancels an existing will. No will yet? Start with our guide to writing a will.
- Lasting powers of attorney. Make LPAs while you are well, or check your attorneys are still the right people.
- Pensions and life cover. Check who your pension provider has on file to receive your pension, and that any life cover is written in trust.
- Businesses, farms and rental property. Check how the £2.5 million cap affects you. Most buy-to-let property does not qualify for business relief.
Planning ahead for April 2027
A short review each year is far easier than a rushed one later. Small changes now can make a real difference to what your family receives.
If your home, savings and pensions together could be worth more than your allowances, now is the time to look at regular gifts, how your will uses your allowances, or a trust.
How PJH Estate Planning can help
PJH Estate Planning can review your will, LPAs and tax plans against this year's rules, including the pension changes coming in April 2027, so your family is not caught out. Find out what you could face in your current situation with our free Estate Health Check: 10 quick questions that show any gaps in your plans. You can visit our offices, or we can visit you at home.
Sources
- GOV.UK: Budget 2025 overview of tax legislation and rates
- GOV.UK: Inheritance Tax on gifts
- GOV.UK: Inheritance Tax on unused pension funds and death benefits
General information as at October 2026. Not legal, financial or tax advice.