Key is calling for advisers to focus on the later life lending advice obligation created by changes in IHT rules coming into effect in April 2027.

The measure will bring unused pension funds and death benefits into the scope of inheritance tax from April 2027.

The two models meet the Government’s revenue objectives while avoiding the risk of delays, confusion, and added pressure on bereaved families.

More than half (52%) of advisers say their clients will be impacted by the rule change.

The decision overturned a previous ruling that would have seen HMRC claim inheritance tax on properties placed in trust decades ago.

Two thirds of IFAs recommend clients increase the retirement income they take and three quarters re-evaluate the role of annuities.

Reeves says stricter rules on inheritance tax will raise more than £2bn.

Around one in seven have consulted or plan to consult a financial adviser over potential changes in the Budget.

The reconsideration could switch the focus back towards capital gains tax and inheritance tax.