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Massive uplift in Inheritance Tax Insurance enquiries following impending 2027 changes

Posted onAugust 18, 2025

A few weeks ago, we explained the upcoming changes to Inheritance Tax rules which are expected to bring a wider range of assets into the taxable portion of an estate. These changes particularly affect self-invested pension funds, but also extend to business and agricultural reliefs.

As a result of the more punitive Inheritance Tax rules, most life insurance companies are reporting a significant uptick in demand for whole of life insurance policies. These policies are often used to cover any potential Inheritance Tax liability, which saves executors from having to arrange an urgent sale of property or from having to cover the initial tax payments themselves.

The insurance broker LifeSearch said that sales of whole life cover were up 230 per cent since 2024, and other companies have reported similar increases.

At Parsonage and Co, we are committed to monitoring developments in tax planning so that we can help our clients explore the options available to them.

Thank you so much for managing Auntie Barbara’s estate in the professional and compassionate manner that you have. We are very grateful to you for all your hard work, patience and understanding.
Louise
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