Nearly three quarters (71 per cent) financial advisers are concerned about pensions being brought into scope of inheritance tax (IHT) from 2027, research from Quilter has found.

The adviser platform’s poll of UK financial advisers also revealed that 52 per cent of their clients would be impacted by the rule change.

Quilter noted that fiscal drag, the abolition of the lifetime allowance (LTA), and cuts in capital gains tax (CGT) allowances had complicated and increased the tax burden on UK taxpayers.

With unspent pensions becoming subject to IHT from 2027 adding to the complexity of estate planning, advisers expected 38 per cent of their client book will need ‘rewrapping’ to alternative tax wrappers over the next 12 months.

Quilter explored ways in which advisers could look to review existing tax wrappers, including reevaluating existing General Investment Accounts, advice for clients who have reached their maximum in their pension pot, and IHT efficiency now that limits are frozen until 2030 and pensions being brought into scope from April 2027.

Advisers were responding to the shift in the advice landscape by revisiting strategies through gifting surplus income, using trusts, and considering investment bonds to help clients preserve their wealth.

The survey also found strong demand for technical guidance, with 80 per cent of advisers looking for more information on IHT and trusts, 58 per cent seeking guidance on reframing pensions in light of IHT changes, and 52 per cent wanting further insights into investment bonds.

“The financial planning landscape is undergoing dramatic changes, prompting advisers to carefully assess the impact on their clients,” said Quilter head of technical sales, Roddy Munro.

“The inclusion of pensions within IHT will fundamentally alter how wealth is structured for inheritance. This announcement, along with others in last year's Autumn Budget, has shone a spotlight on the importance of estate planning, forcing many to rethink traditional IHT and retirement planning strategies.

“This shift presents a significant opportunity for advisers to demonstrate the value of their expertise, as clients now more than ever need professional advice to avoid a substantial increase in their tax burden.

“We are already witnessing advisers seeking a broader array of tax wrappers and trusts to adapt to the evolving landscape. As fiscal policy continues to evolve, it is crucial for advisers to have access to clear, practical solutions to help their clients achieve the best possible financial outcomes.”

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