Downing has announced the launch of a new inheritance tax (IHT) calculator ahead of a forecasted surge in receipts over the next five years.

The calculator will enable advisers to model clients’ IHT liabilities ahead of major legislative changes to support estate planning decisions.

The launch of the calculator comes as the Office for Budget Responsibility has forecast that total IHT receipts are set to increase by 67% over the next five tax years to £14.5bn in the 2030/21 tax year.

The investment manager’s IHT calculator will allow advisers to view estimated IHT liabilities, including the impact of business relief reforms that came into play earlier this month, and the inclusion of unused defined contribution pensions within estates from next year.

The calculator is available via Downing’s adviser hub, which allows advisers to export a co-branded report showing a summary of their clients’ IHT positions for use in meetings.

Head of product at Downing, Rebecca Ward-Howes, said that as IHT receipts have reached record highs, and with further increases forecasts, the "imperative for robust estate planning has never been greater".

She concluded: "Recent policy changes have prompted every adviser to fundamentally revisit all estate planning with clients - and in doing so, they are accelerating real innovation across the IHT planning landscape.

"At Downing, we recognise that advisers need more than product solutions; they need the tools and supporting materials to model complex scenarios with confidence and communicate outcomes to clients in a compelling, accessible way.

"We are seeing strong demand from advisers for business relief, with successive Budgets adding further momentum. We responded by building what we believe is a best-in-class planning tool - and the market has validated that. Since launch, 124 advisers have adopted the tool, with feedback overwhelmingly affirming it as superior to what they were previously using."

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