Over nine in ten (93%) of Financial Planners are working with lawyers or accountants for additional expertise on inheritance tax (IHT) planning, according to a new report.

Half (50%) of the 100 advisers surveyed for the report work with both accountants and lawyers on IHT planning.

A further 40% work just with accountants and another 6% had plans to work with accountants or lawyers in the future.

More than four out of five (81%) advisers questioned by investment manager Downing employed specialists who only advise on IHT planning.

More than half (52%) said they believed their firm was very experienced on IHT planning solutions. However, 45% described themselves as only quite experienced, while 3% admitted they are not very experienced.

Over half (51%) of the advisers surveyed said they would value more support from providers on IHT. Two thirds (42%) of advisers said they already received support from specialist IHT providers.

IHT is a growing area for many Financial Planners as tax changes loom.

As announced in the Budget, from April 2027 unused pensions will fall into the scope of IHT. This is likely to lead to a surge in IHT receipts for the Treasury and more tax on estates. The Office for Budget Responsibility has forecast that close to 10% of all estates will pay IHT by 2030.

Inheritance tax raised £7.6bn for the Treasury in the 2023/24 tax year, an increase from £7.1bn in the previous tax year. Receipts are forecast to continue to rise as fiscal drag pulls more estates into the IHT net with the nil-rate band and residence nil-rate band frozen until 2030.

Restrictions on Agricultural Property Relief and Business Relief from April 2026, as announced in the October Budget, will also see family-owned farms and businesses pulled into the IHT net.

Mark Dunn, head of retail sales, at Downing, said: “IHT planning is growing in prominence as part of advisers’ workload and as part of their client base as more clients focus on tax efficiency. That is highlighted by how many firms employ specialists who only focus on IHT planning and the growing business relationships with lawyers and accountants to source further expertise.”

Advisers believe clients are generally knowledgeable about IHT planning solutions - 43% said their clients were well-informed, while 49% described them as quite well-informed.

PureProfile surveyed 100 UK financial advisers on behalf of Downing in November.

More than nine in 10 Financial Planners (94%) have reported a rise in demand for IHT planning advice since the October Budget, according to an earlier report from Downing.