A surge in online searches for inheritance tax advice has been blamed on Chancellor Rachel Reeves “throwing typical pension strategies out the window” in a move branded a “pension tax raid.”

Google data shows huge spikes in people seeking ways to avoid paying the levy, amid fears unused pension pots will be dragged into the inheritance tax (IHT) net from April 2027.

Research by Blackfinch Investments found searches for “Inheritance Tax advice” are up 164% year-on-year, while “Inheritance Tax grandchildren” has jumped 53%.

Every month, around 5,400 people are typing into Google: “How can I avoid Inheritance Tax?”

Under the changes, experts warn retirees who thought their pension savings were safe from the taxman could face a sudden and costly shock.

Scott Gallacher, Director at Leicester-based Rowley Turton, said: “Under pension freedoms, Inheritance Tax had become much less of a concern for many of our clients. “By building up pensions and spending other assets first, many could quite sensibly avoid significant IHT liabilities. But Rachel Reeves’ proposed pension IHT raid throws that strategy out of the window.”

He told Newspage: “Suddenly, clients who thought they were safe now face a potential overnight IHT issue – and we’ve already received a number of concerned calls. The good news is that, with timely and proactive planning, most clients can still significantly reduce their exposure.

“The key is being willing to part with, at least some of, your money in a sensible and structured way.

“While the usual advice of ‘spend it or gift it’ still applies, we’re also actively exploring more sophisticated options.

“That includes Business Relief schemes, Discounted Gift Trusts, and Gift & Loan strategies. In many cases, we’re modelling six-figure IHT savings – often with little or no impact on our clients’ lifestyles.”

Rob Mansfield, Independent Financial Advisor at Rootes Wealth Management, added: “There’s been a big increase in IHT conversations over the past year. It’s an unpopular, poorly understood tax and the government are ever hungry for more revenue.

“Frozen allowances and tightened rules are going to cast a wide net. There’s no easy way to avoid it but broadly speaking you can spend it, insure it, gift it away or invest in specific schemes. Each route has its pitfalls though so take professional advice to avoid a mistake.”

David Stirling, Director at Belfast-based Mint Mortgages & Protection, said: “It’s no surprise there’s been a surge in searches for IHT planning, as these reforms from Rachel Reeves have thrust the pension tax raid to the forefront of many retirees’ minds.

“Those who thought that their pension was a safe haven have had the rug pulled from under them and are now having to look at more complex planning, such as gifting and trusts. In this new landscape, proactive advice isn’t just helpful it’s going to be essential.”