As summer ends, many are looking ahead to retirement, inheritance, and estate planning in light of significant upcoming changes. From new inheritance tax rules affecting pensions to rising later-life lending and contentious probate cases, there is more to consider than ever when planning for the future.
In this Clarke & Wright September newsletter, we explore how the inclusion of pension assets in IHT will reshape retirement strategies, examine the surge in contested wills, highlight recent high-profile estate disputes, and review proposed property tax changes. We also cover increases to Lasting Power of Attorney fees and the latest IHT receipts, offering insight for families navigating this evolving landscape.
Whether you are reviewing existing plans or making new arrangements, this month’s updates provide practical guidance to help protect wealth, retirement income, and family legacies.
Government Targets Death in Tax Reform as IHT Hits Record
Inheritance tax (IHT) receipts continue to hit record highs, with £844m collected in July 2025 and £3.1bn in the first four months of the financial year, £200m higher than the same period last year. Monthly receipts are rising steadily, driven by frozen nil-rate bands, high property values, and more estates falling into scope.
With unspent pension assets set to be included from April 2027 and potential caps on lifetime gifts under discussion, the Treasury is clearly viewing death as a significant lever to boost public finances.
Experts warn that any changes must balance revenue goals with the risk of behavioural shifts in gifting and wealth transfers. While tackling IHT could generate funds, the impact on families, the economy, and short-term tax receipts must be considered.
The Autumn Budget could be a critical moment for families planning ahead. We will provide a full update as soon as the Chancellor sets out the details (expected to be late October), so you can navigate any changes to inheritance tax, pensions, and estate planning.
LPA Application Fees Set to Increase
The fee for applying to the Office of the Public Guardian (OPG) for a Lasting Power of Attorney (LPA) is set to increase from £82 to £92 from 17 November 2025, subject to parliamentary approval. Repeat applications will rise from £41 to £46.
The Ministry of Justice says the increase will help cover the cost of delivering OPG services, while existing fee reductions and exemptions based on financial circumstances will remain. Over the past year, more than 1 million new registrations were added, bringing the LPA and EPA registers to over 9.3 million entries.
Bee Sting Leads to Billionaire’s Death and Inheritance Battle
The sudden death of Indian billionaire Sunjay Kapur has triggered a family succession dispute at Sona Comstar, the £2.7 billion automotive component manufacturer founded by his father. Kapur, heir to the business, reportedly swallowed a bee while playing polo in Surrey and died from a heart attack in June.
The dispute has emerged between his mother, Rani Kapur, and the company’s board of directors. Rani Kapur claims the board exploited the family’s mourning to “wrest control and usurp the family legacy,” alleging she was pressured into signing documents and lost access to her bank accounts. She also states that her late husband made her the sole beneficiary of his estate and a majority shareholder in the Sona Group.
The board, however, says Rani Kapur has not been a shareholder since at least 2019 and appointed Kapur’s wife, Priya Sachdev, as a non-executive director to strengthen governance. A new chairman had also been appointed just weeks before Kapur’s death, which Rani Kapur says the family did not approve.
The dispute has drawn public attention, with Kapur’s estranged sister Mandhira Kapur voicing support for the family on social media. Legal representatives for Rani Kapur argue that the board is attempting to take control of the company while ignoring questions surrounding Sunjay Kapur’s death.
The case continues to unfold, highlighting tensions between family legacy and corporate governance at one of India’s largest automotive businesses.
“Mansion Tax” Plans Could Introduce CGT on High-Value Homes
The government is reportedly considering a “mansion tax” alongside plans to replace Stamp Duty, aiming to close a £40 billion gap in public finances. Under the proposals, private residence relief on capital gains tax (CGT) could be removed for homes above a certain threshold, meaning homeowners may pay CGT when selling their primary residence. Higher-rate taxpayers could pay 24% of any gain, while basic-rate taxpayers could pay 18%.
Thresholds are still under discussion, but a proposed £1.5 million limit could affect tens of thousands of homeowners, with potential CGT bills approaching £200,000. A national property tax on primary residences is also under consideration, alongside a second local tax to replace council tax.
Experts warn these changes could slow the housing market, reduce property movement, and disproportionately affect older homeowners planning to downsize. Market data suggests that high-value homes in London and the South would be most affected.
The combination of CGT changes, higher property taxes, and potential limits on gifting could have a significant impact on the UK property market, making careful planning more critical than ever.
Bigamist’s Estate to Be Shared Between Spouses
A legal dispute has emerged over the £1.8 million estate of accountant James Dinsdale, who died of cancer in 2020. Dinsdale was legally married to Dr Victoria Fowell, a cosmetic dentist, before marrying beautician Margaret Dinsdale in 2017. Because his first marriage was never formally ended, the second was legally void, leaving Margaret with no automatic inheritance rights.
Dinsdale died without a will, so his estate initially passed to his former wife and adult son. Margaret is now seeking recognition as a spouse and a share of the estate. She had cared for Dinsdale full-time during his final illness and had been financially dependent on him. Evidence suggested she was unaware that his first marriage was still valid.
The court heard that Dr Fowell had previously received a property and a £2 million lump sum following her separation from Dinsdale, with no evidence of ongoing financial need.
Judge Brightwell confirmed that Margaret Dinsdale should be considered a spouse and awarded her £50,000 from the estate to help cover living and legal costs. A further hearing will determine how the remainder of the estate will be divided between Margaret, Dr Fowell, and Dinsdale’s son.
Contentious Probate on the Rise: Families Challenging Wills Like Never Before
The number of contested wills and inheritance disputes in the UK is rising sharply. Recent figures reveal a 56% increase in applications to block probate over the past five years, with 11,362 caveat applications in 2024, up from 7,268 in 2019.
Several factors are driving the trend. An ageing population increases the likelihood of mental capacity challenges, while older generations hold more wealth, particularly in property, making inheritance disputes more financially significant.
Complex family structures, second marriages, and the growing use of DIY or online wills also add to the risk of disputes. Intestate estates are at a five-year high.
With challenges becoming more common, professional estate planning is increasingly vital. Updating wills, planning for blended families, and discussing inheritance openly can reduce conflicts and protect family relationships.
Rising Later Life Lending Linked to New IHT Rules
From April 2027, most unused pension assets will be included in inheritance tax (IHT) calculations, a change set to reshape retirement and estate planning. For older homeowners, unlocking housing wealth could become a core strategy to reduce estate size or fund retirement more efficiently.
With over £2 trillion in property wealth held by those over 55, advisers are now expected to treat later life lending as a central part of retirement planning. The inclusion of pensions in IHT marks a shift from tax-free wealth transfer toward strategies that support income in retirement.
Estimates suggest that around 10,500 estates will face IHT for the first time, and another 38,500 will see higher liabilities. This makes housing wealth a key resource, as it can fund retirement, provide capital for later-life needs, or enable intergenerational gifting that reduces IHT liability if the donor survives seven years.
Modern equity release and later life lending products offer flexibility and tax efficiency, but expertise is essential. Advisers who collaborate with lending specialists, tax experts, and wealth managers can deliver holistic, tailored solutions that protect both retirement lifestyle and family legacies.
The message is clear. With pensions increasingly part of the IHT equation, property wealth and later life lending are no longer optional, but core tools for effective retirement and estate planning.
Planning Ahead for Peace of Mind
With inheritance tax rules evolving, later-life lending becoming a core part of retirement planning, and disputes over estates on the rise, now is a crucial time to review your arrangements. At Clarke & Wright, we know that navigating wills, trusts, and pension planning can feel overwhelming. Still, careful planning today can prevent stress and protect both your wealth and your family relationships.
Whether you are updating a will, exploring strategies to reduce IHT, or ensuring your estate plan reflects your wishes, our team is ready to guide you every step of the way. Take action now to safeguard your assets and provide clarity for those you care about most.