May’s local elections signalled the very real possibility of a Reform UK government in two years’ time. What would a Reform Government mean for personal wealth, inheritance and estate planning?
For many families, financial planning has become increasingly complex. Frozen tax thresholds, changes to inheritance tax reliefs, higher scrutiny of trusts, and the growing ownership of digital assets such as cryptocurrency have all made it more important to plan carefully.
Reform has not yet set out a fully detailed programme for wills, trusts and probate. However, its wider tax policies and public statements suggest a direction of travel: lower taxes, simpler rules and a more favourable environment for wealth creation, business ownership and intergenerational transfer.
They resiled from suggestions of a widespread tax cut in Nigel Farage’s November speech but it is reasonable to assume a continued focus on limiting taxes.
For families, business owners and investors, that could be significant but there can be no certainty. Two years is a long time in politics and political parties often change their minds about what they plan to do; particularly when they have to start putting a budget together and need to balance the books. And, of course, even if Reform UK do win the highest number of seats, there is a high probability that they will need to form a coalition in order to govern, most likely with the Conservative Party who may dilute the policies. However, it is useful to be aware of their position on key issues.
Inheritance tax
The area where Reform has been clearest in their intentions is inheritance tax. Reform has previously proposed raising the inheritance tax threshold substantially, with tax only applying above £2 million and then at a lower 20% rate. Some Reform figures have also spoken more broadly about abolishing inheritance tax altogether.
That would represent a major change from the current system, where the standard nil-rate band remains £325,000 and the residence nil-rate band £175,000, with those thresholds frozen until April 2031.
For many families in London and the Southeast, where property values alone can push estates into inheritance tax territory, a higher threshold would be politically attractive. It could reduce the number of estates paying inheritance tax and simplify planning for families whose wealth is tied up mainly in the family home.
However, it would not remove the need for proper wills or estate planning. Families would still need to decide who inherits, how assets are protected, who acts as executor, and how to avoid disputes between beneficiaries.
Business owners and farmers
Recent inheritance tax changes have made succession planning more urgent for business owners, farmers and families holding trading assets. From April 2026, full relief for qualifying business and agricultural property is capped, with reduced relief applying above the allowance. AIM shares also now receive only 50% relief.
A Reform Government may seek to reverse or soften some of these measures as part of a pro-enterprise tax agenda. That could be welcomed by family business owners who want to pass businesses to the next generation without forcing sales or restructuring.
But again, timing matters. Tax changes can take years to legislate, and families cannot assume that current rules will disappear. Business owners should continue planning on the basis of the law as it stands, while keeping structures under review.
Trusts
Reform has said little specifically about trusts. If inheritance tax were reduced or abolished for many estates, some families may assume trusts would become less important. That would be a mistake.
Trusts are not only about tax. They can help protect vulnerable beneficiaries, manage assets for children or grandchildren, provide control over family wealth, and reduce the risk of money passing in unintended ways after divorce, remarriage or family disputes.
A lower-tax environment may reduce some tax-driven trust planning, but it would not remove the need for asset protection and succession planning.
Shares, investments and crypto
For people holding shares, investment portfolios or cryptoassets, the key issue may be less about Reform’s specific policies and more about the likely direction of tax.
Reform’s broader platform favours lower taxation and reduced complexity. In principle, that could mean a more favourable approach to capital gains tax, dividend taxation or investment income. However, detailed policy in these areas remains limited.
The biggest risk is planning based on politics rather than law
The temptation, when a party proposes major tax cuts, is to delay decisions. That can be risky. Wills, inheritance tax planning, lifetime gifts, trusts and business succession should be based on current law, family circumstances and commercial reality, not speculation about a future government.
Even if Reform entered government with a strong mandate, it would still need parliamentary time, detailed legislation and fiscal headroom to implement major tax changes. The Institute for Fiscal Studies has previously questioned the scale of Reform’s proposed tax cuts and how they would be funded. i.e. It is doubtful that a Reform Government would be able to make the tax cuts they talk about and that was reflected in the November speech.
That does not mean change is impossible. It means families should be careful about assuming when, how or whether it will happen.
Action
For now, the practical advice is simple: review your arrangements, but don’t make decisions based on party rhetoric that has not been tested in the harsh realities of managing the country’s financial budget.
Anyone with property, business interests, overseas assets, trusts, significant investments or crypto should ensure their will is up to date and that their executors will be able to administer the estate efficiently. Where control is needed, trusts should be considered. Whilst for many, trusts have connotations of massive wealth and dynasty families, trusts simply provide control and many people want that for their inheritance.
A Reform Government could bring a very different approach to inheritance and wealth taxation. But good estate planning is not simply about reducing tax. It is about clarity, control and making sure your wishes are carried out. That will remain important, whatever happens politically.
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