Stephen Hill Partnership Ltd

22/09/2026

INHERITANCE TAX CASE LOST BY HMRC; MORE FAMILIES COULD BENEFIT

HMRC lost a major inheritance tax case, potentially affecting thousands of families who used historic home-loan inheritance planning schemes. The case involved Leslie Elborne's £1.8m home, where her family successfully overturned HMRC's attempt to levy inheritance tax. As a result, her estate avoids an estimated £700k inheritance tax bill.

In 2003, Elborne sold her home to a trust in exchange for a loan note. She then transferred the loan note to another trust for her children. She continued living in the home rent-free. Because she lived more than seven years after the transfer, the loan note fell outside her estate under the rules at the time.

The Court of Appeal ruled that HMRC's anti-avoidance arguments didn't apply, as the scheme pre-dated later rule changes and complied with the law then in force. This ruling sets a significant precedent for families involved in similar legacy home-loan schemes. It may lead to reduced or cancelled inheritance tax liabilities for many long-running disputes.

15/09/2026

HMRC ISSUES A NEW SCAM WARNING AS REPORTS RISE

HMRC is alerting taxpayers to a rise in fraudulent messages impersonating the tax authority. It says it is receiving increased reports of scam emails claiming people are due a Self-Assessment tax refund for 2024-25. These emails pressure recipients to act urgently and provide personal or bank details.

HMRC stresses it will never send an email with an urgent deadline to claim a tax refund. To check a legitimate refund, taxpayers should log in securely via GOV.UK or the HMRC app. HMRC urges people to stop and think before sharing information or opening links/attachments in unexpected messages.

If unsure, do not click anything and report the message to HMRC. GOV.UK provides a list of genuine HMRC contact details to help verify messages.

Suspicious phone calls can be reported through HMRC's online service (requires email or sign-in).

Suspicious text messages should be forwarded to 60599 (network charges apply). HMRC will never notify you of a tax rebate or request personal/payment details by text message.

Suspicious emails can be forwarded to [[email protected]](mailto:[email protected]), then deleted to avoid accidental clicks.

GOV.UK - The best place to find government services and information.

08/09/2026

COULD YOU BE HIT WITH AN INHERITANCE TAX BILL LONG AFTER AN ESTATE IS SETTLED?

Experts have highlighted several practical and policy concerns about the Government's planned inheritance tax (IHT) changes for pensions, set to take effect from April next year. They warn that the proposals do not account for lost or forgotten pensions, which are common. Lost pensions total £31bn, averaging £9,470 each, and the value of unclaimed pots has risen 60% since 2018 according to Pensions UK.

If a pension is found years after someone's death, the IHT bill for the entire estate may need to be recalculated, potentially reopening settled estates. Executors will not be liable for any tax due on pensions discovered after they have already received clearance from HMRC confirming that all inheritance tax due has been paid. Instead, HMRC would need to revisit the initial calculations, including any tapering of the residence nil-rate band, potentially landing beneficiaries with an additional tax bill years down the line.

The Chartered Institute of Taxation (CIOT) calls the proposals "highly unsatisfactory", warning of unfair tax bills, delays in settling estates, disputes between families, pension providers and executors, and an increased administrative and compliance burden for HMRC. The CIOT said that the new rules should be changed so that a pension discovered after an estate has been wound up should incur IHT at a flat rate, which would vary depending on the tax position when an estate was finalised. Experts have highlighted several practical and policy concerns about the Government's planned inheritance tax (IHT) changes for pensions, set to take effect from April next year. They warn that the proposals do not account for lost or forgotten pensions, which are common. Lost pensions total £31bn, averaging £9,470 each, and the value of unclaimed pots has risen 60% since 2018 according to Pensions UK.

If a pension is found years after someone's death, the IHT bill for the entire estate may need to be recalculated, potentially reopening settled estates. Executors will not be liable for any tax due on pensions discovered after they have already received clearance from HMRC confirming that all inheritance tax due has been paid. Instead, HMRC would need to revisit the initial calculations, including any tapering of the residence nil-rate band, potentially landing beneficiaries with an additional tax bill years down the line.

The Chartered Institute of Taxation (CIOT) calls the proposals "highly unsatisfactory", warning of unfair tax bills, delays in settling estates, disputes between families, pension providers and executors, and an increased administrative and compliance burden for HMRC. The CIOT said that the new rules should be changed so that a pension discovered after an estate has been wound up should incur IHT at a flat rate, which would vary depending on the tax position when an estate was finalised.

01/09/2026

PREPARING FOR THE AUTUMN BUDGET

The new Chancellor of The Exchequer, John Healey, has announced that he will deliver his first Budget on 28 October. There's also a new Prime Minister in Andy Burnham, so speculation is rife as to what tax rises may be announced. Both have stated that they will remain true to the set of fiscal rules set out by Mr Healey's predecessor, Rachel Reeves.

The Prime Minister has hinted he may "ask for a bit more in tax" to fund policy plans and as the fiscal rules and reduced headroom mean limited scope for borrowing, this does push the Chancellor toward tax rises. Economists expect increases similar to the £26bn rise in November 2025, or even £42bn if spending plans are very high.

Labour has committed not to raise income tax, VAT, employee NI, or onshore corporation tax - together 54% of the tax base. Stamp duty and council tax reform are also ruled out, and experts say large structural reforms are unrealistic before October. Economists predict a "dog's breakfast" of smaller measures rather than big reforms. Key candidates include capital gains tax, pension taxation, "sin taxes" and wealth taxes.

Experts strongly advise not making major financial decisions based on speculation. Instead, focus on actions based on current rules. Use your full £20k ISA allowance and maximise pension tax relief while it exists in its current form. Prepare for known upcoming changes such as the cash ISA allowance dropping to £12k for under 65s next year and pensions being included in estates for inheritance tax calculations.

29/08/2026

🔐🏆 PRISON ISLAND CHALLENGE! 🏆🔐

Yesterday, some of the Stephen Hill Partnership team headed to Prison Island in Maidstone for an afternoon of challenges, teamwork and a little bit of competitive spirit!

After tackling the cells and putting their problem-solving skills to the test, there could only be one winning team…

Malcolm’s team!

Well done to the winners, although we’re sure the losing team will be claiming they were robbed!

A brilliant afternoon and a great chance to get everyone together outside the office.

26/08/2026

🍕🍍 WE HAVE A TIE! 🍍🍕

Our latest Question of the Day has officially caused a workplace divide… 5 votes for YES and 5 votes for NO!

So now we need YOU to settle it for us…

👇 Does pineapple belong on pizza?
🍍 YES — sweet & savoury perfection
🚔 NO — jail immediately

Comment your verdict and help us break the tie!

25/08/2026

🌞 AUGUST BANK HOLIDAY WEEKEND APPROACHES 🌞

With the August Bank Holiday just around the corner, we hope everyone gets the chance to enjoy some well-earned time to relax and recharge.

Whether you're heading out, spending time with family and friends, or simply enjoying a quieter few days, we hope you have a lovely weekend when it arrives.

From everyone at Stephen Hill Partnership, have a great week!

18/08/2026

RETIREES RECLAIMING LARGER PENSION TAX REFUNDS

New HMRC figures show large refunds reclaimed in early 2026. Thousands of retirees reclaimed money after being overtaxed on flexible pension withdrawals.

HMRC repaid £44.1m between January and March, with 13,942 approved claims processed in that period. The average repayment exceeded £3,160, up nearly 10% from the previous year.

Emergency tax codes remain the core problem. When they are applied to initial flexible withdrawals, they then continue to cause unexpected and excessive deductions for retirees, taxing the withdrawal as if it were monthly income for the rest of the tax year.

Experts have highlighted a shift in the issue – while fewer people may be affected, those who are caught by the system are losing larger sums up front. The government's plan to make pensions subject to inheritance tax could push more people to withdraw large lump sums, which may increase emergency tax incidents even further.

HMRC has announced an overhaul of emergency pension tax processes, promising faster refunds, but higher-rate charges will still occur.

11/08/2026

STATE PENSIONERS RECEIVING NEW 'EARNINGS LIMIT' TAX CODES

HMRC is sending updated tax codes to state pensioners who exceeded the earnings limit for the Winter Fuel Payment. These letters began going out in June.

The Winter Fuel Payment (£200 - £300 depending on age) was paid to everyone, but around two million pensioners who earned above £35,000 must now repay it via tax adjustments.

Pensioners will receive a letter or HMRC app notification when their tax code changes. HMRC will review tax paid versus tax due, and if the full amount cannot be collected, they will issue a tax calculation afterwards.

HMRC will automatically reclaim the payment by adjusting PAYE tax codes for affected pensioners, unless they file Self-Assessment returns. Pensioners cannot repay early; they must wait for HMRC to collect it through future tax codes.

Repayment will occur in the 2026–27 tax year, recovering the payment made in 2025–26. As an example, a £200 payment will mean roughly £17 extra tax per month until repaid.

HMRC says most repayments will be handled automatically through tax codes, while Self-Assessment users will repay via their tax return.

04/08/2026

ISA REFORMS ON THE WAY

The government is consulting on a new ISA to replace the Lifetime ISA (LISA). It will be available to anyone aged 18+, removing the LISA's upper age limit of 40. This reflects the rising ages of first-time buyers.

It still includes a 25% government bonus but will be paid only at the point of buying a property, not annually. There will be no 25% withdrawal penalty if funds are used for non-property purposes. The controversial £450,000 property price cap remains unchanged, despite rising house prices, and the Treasury suggests it is still appropriate.

As had been alluded to previously, HMRC has confirmed that it will tax all interest earned on cash held within a Stocks & Shares ISA at 22%. This closes the long-standing loophole where savers could hold cash inside an investment ISA and still receive tax-free interest.

Investors will no longer be able to hold 100% of a Stocks & Shares ISA in money market funds, which behave similarly to cash.