HMRC estimates that around 10,500 estates will face an inheritance tax bill for the first time as a result of the change, with a further 38,500 expected to pay more. However, these are static estimates that do not account for shifting behaviour, such as earlier drawdown or increased gifting.

In Scotland, that behavioural change is already evident, according to Alanah Mitchell, financial planner in Rathbones’ Glasgow office.

Ms Mitchell said: “We’re seeing a significant increase in clients revisiting their estate planning, particularly where pensions form a large part of their wealth.

“Even where an inheritance tax liability may not arise, the changes are creating uncertainty and prompting a reassessment of long‑standing plans.

“In practice, this is leading to more discussions around using pensions more actively – from drawing tax‑free cash to support gifting, to using surplus income rules to pass money on without the need to survive the seven‑year period.”

She added: “We’re also reassessing income strategies more broadly, with some clients now considering accessing pensions earlier than previously planned.

“More widely, this is feeding into a broader review of estate planning, including gifting, trust arrangements and other inheritance tax solutions, as clients take a more proactive and joined‑up approach.”

The trend is reflected in new research from Rathbones, which found that more than two thirds (67%) of 1,010 parents and grandparents funding private school or university costs say the change is motivating them to provide support during their lifetime. Over a third (35%) said it had a strong influence on their thinking.

Planners across Rathbones’ UK offices report similar patterns, with pensions increasingly being used to generate income that supports gifting to children and grandchildren, alongside a broader rethink of long-standing approaches to legacy planning.