Inheritance Tax Planning in Bournemouth and Dorset

Inheritance tax in Bournemouth - the growing problem

The nil-rate band has been frozen at £325,000 since 2009. Bournemouth property values, meanwhile, have not - a family home in Westbourne, Talbot Woods, Lower Parkstone or Southbourne now regularly sits between £400,000 and £600,000.

The arithmetic is straightforward. Add a pension pot, modest investments, life cover paid into the estate, perhaps a small business interest or a buy-to-let - and a Bournemouth couple who never considered themselves wealthy can comfortably exceed the available thresholds.

Many Dorset families are now facing an inheritance tax bill they never expected. Some are caught entirely by surprise after a partner has died. The earlier the position is reviewed, the more can be done about it.

The April 2027 pension change - what Bournemouth families need to know

From 6 April 2027, unused pension assets will sit inside the taxable estate for the first time. This is set in law by the Finance Act 2026.

Bournemouth and Dorset families with workplace pensions, SIPPs and personal pensions will see their inheritance tax exposure increase materially overnight. For estates that already brush against the nil-rate bands, every pound of pension wealth on death will be taxed at 40%.

The window to act is narrowing. Death-benefit nominations should be reviewed now. Drawdown strategy, the use of trust nominations and the place of life cover in the plan all need to be set out before the change takes effect.

What we cover for Bournemouth and Dorset clients

Will writing and review for clients across Bournemouth, Poole, Christchurch, Wimborne and the wider Dorset area - including mirror Wills, Wills with discretionary or life-interest trusts, and severance of joint tenancies where appropriate.

Trust arrangements - discretionary, life-interest and insurance trusts - to remove capital from the taxable estate, protect a surviving spouse, and direct where assets ultimately pass.

Lasting Powers of Attorney - both Property & Financial Affairs and Health & Welfare - properly registered with the Office of the Public Guardian.

Inheritance tax review - a full assessment of the exposure, the reliefs and exemptions available, and the most efficient route to reduce the eventual bill.

Pension coordination - covering the April 2027 implications, nomination structure, drawdown strategy and the interaction with the rest of the estate plan.

Local advice from a practice that knows Dorset

Based in Bournemouth - we have served Dorset, Hampshire and the South of England for 28 years. We understand the local property market, the demographics of clients in this part of the country, and the specific business community we work alongside.

Our clients include retired professionals, small-business owners and directors, farming and landowning families, property investors and individuals approaching retirement who want to make sure the next generation actually receives what was intended.