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    Protecting Your Estate in 2026: Navigating Upcoming Changes to Inheritance Tax and Capital Gains Tax

    TaylorChartered Surveyors
    Published on Dec 05, 2025

    Planning your estate has always been an essential part of securing your family's financial future. However, with upcoming changes to inheritance tax and capital gains tax in 2026, it's more important than ever to understand the implications for your assets and investments. Whether you’re considering gifting property, transferring assets to heirs, or selling investments, staying informed will help you protect your wealth and minimise potential tax liabilities.

    Understanding Probate Valuation

    A key step in estate planning is the probate valuation. This process involves valuing all assets within an estate at the time of death to determine how much inheritance tax may be due. With changes expected in 2026, careful valuation will be crucial, particularly for properties and investment portfolios.

    Factors that affect probate valuation include:

    • Property values and market trends

    • Outstanding mortgages or debts

    • Investments, savings, and personal possessions

    By ensuring accurate probate valuations, you can avoid unexpected tax bills for your heirs and make informed decisions about gifting or selling assets during your lifetime.

    Capital Gains and Inheritance Tax Changes

    From 2026, significant updates are expected in how capital gains tax (CGT) interacts with inheritance. Currently, when someone inherits an asset, the asset’s value is "stepped up" to its market value at the date of death. However, proposed changes may alter how gains are calculated, potentially increasing the CGT liability for beneficiaries if they sell inherited assets.

    Key considerations include:

    • Timing the sale of assets to optimise tax efficiency

    • Reviewing portfolios and property holdings for potential gains

    • Consulting financial advisors about tax planning strategies

    By understanding the new rules, you can reduce the risk of your estate being eroded by unexpected capital gains inheritance tax.

    Using Tools to Plan Ahead

    Practical tools can make estate planning more manageable. For instance, a Help to Buy interest calculator can help you evaluate outstanding mortgage liabilities on property investments, allowing you to factor these into your overall estate plan. By combining mortgage insights with probate valuations and CGT planning, you gain a clearer picture of your net estate and potential tax exposure.

    Other useful strategies include:

    • Gifting assets during your lifetime to reduce estate value

    • Creating trusts to protect assets and manage tax efficiently

    • Reviewing pension contributions and other tax-efficient investments

    Final Thoughts

    Estate planning is never one-size-fits-all, especially with inheritance tax and capital gains tax changes on the horizon in 2026. Proactive planning, accurate probate valuation, and the use of calculators like a Help to Buy interest calculator can make a significant difference in protecting your wealth for future generations.

    Start reviewing your estate now to stay ahead of the changes and ensure that your assets are passed on as you intend—without unnecessary tax complications.