Frozen Tax Thresholds Until 2031. What It Means For Your Legal Planning

Posted 28 Nov, 2025

The government has confirmed that income tax and national insurance thresholds will remain frozen until April 2031. Although this is a tax policy, it has practical consequences for the legal decisions many clients make about their estates, their property and their long term protection planning.

The freeze means more people may move into higher tax bands as their income or pensions increase. While we do not advise on tax or financial products, this shift can change how clients think about their wills, their property arrangements and the steps they take to protect themselves and their families.

How Frozen Thresholds Affect Wills and Estate Planning

As the value of estates increases over time, more families may find that their estates come closer to, or exceed, inheritance tax thresholds. This makes it important to have a clear and legally robust will. Clients often choose to update their wills when wider financial pressures change, especially where property, business assets or family arrangements have evolved since the will was first written. A well drafted will ensures that your estate passes in the way you intend and avoids uncertainty for your executors and loved ones.

How It Affects Probate Preparation

Higher estate values and changing financial circumstances can influence the complexity of probate. Even when tax advice is provided by a financial specialist, executors still need clear legal support with valuations, estate administration and the practical steps involved. Planning ahead by keeping documents up to date, maintaining clear records and ensuring your will reflects your wishes can make the probate process smoother for those you leave behind.

How It Affects Property Decisions

For many clients their property is the most significant part of their estate. As thresholds remain frozen, some clients may reconsider how and when they buy, sell or transfer property. Although we do not give financial advice, we assist with the legal impact of those decisions through our conveyancing services. Whether you are purchasing, gifting or restructuring ownership for personal reasons, the legal work must be handled with clarity and care.

How It Affects Long Term Protection, Including LPAs

Changing financial conditions often prompt clients to think about long term stability. Lasting Powers of Attorney allow you to appoint people you trust to make decisions on your behalf if you are ever unable to do so. Many clients choose to put LPAs in place when reviewing their wider affairs, especially where shifting economic conditions highlight the importance of future planning.

What Clients Should Consider Now

The threshold freeze does not require immediate action from everyone, but it creates a long term environment in which proactive legal planning becomes more valuable. Ensuring your will is up to date, confirming that your executors know where key documents are held, considering LPAs and reviewing any property arrangements gives you control and reduces pressure on those close to you.

If you would like support with wills, probate, conveyancing or LPAs, or if you want to review your legal arrangements in light of the government’s long term freeze on thresholds, our Private Client team is here to help you plan with confidence and clarity.