Standard Life is significantly increasing its inheritance tax planning advice services in response to recent changes and upcoming regulations that are expected to bring more households into the scope of the death tax. The life assurance and pensions firm announced plans to launch its first targeted inheritance tax planning advice campaign by the end of 2026.
Effective April 6, 2027, a broader range of unused pension funds and death benefits will be included in the valuation of an individual's estate for inheritance tax purposes. This adjustment is anticipated to expand the number of estates subject to the tax.
In conjunction with these changes, Standard Life has also re-entered the onshore investment bond market to assist customers in navigating evolving financial landscapes influenced by recent budget decisions. These strategic moves come as the company reports better-than-expected profits for the first half of the year, driven by growth in new business and strong demand for its pension risk transfer offerings.
For the first half of 2026, Standard Life reported an adjusted operating profit before tax of £563 million, surpassing earlier forecasts. Core operations saw a six percent increase in revenue, reaching £743 million. Assets under administration grew by five percent to £333 billion by the end of the reporting period.
The company also noted a year-on-year interim dividend increase of 2.6 percent, with a payout of 28.05 pence per share. Standard Life remains on track to meet its 2026 financial targets, with contributions from its pensions and retirement divisions.
Despite a reported overall loss of £179 million for the first six months, attributed to £473 million in paper losses on financial protection contracts used for market hedging, the company emphasized that these are a known consequence of its protective hedging strategy. The firm has reiterated its adjusted operating profit target of approximately £1.1 billion for 2026.
Standard Life's expansion plans include the proposed £2 billion acquisition of Aegon UK, which is anticipated to be finalized by the end of 2026 pending regulatory approval. This acquisition is projected to create significant synergies and position Standard Life as the largest entity in the UK Pensions and Savings market, with a strong presence in both workplace and retail sectors. The company is also pursuing a new pension risk transfer partnership aimed at larger defined-benefit pension schemes. Cost savings initiatives, including the use of artificial intelligence, are also contributing to a more efficient operational structure, with cumulative savings reaching £210 million in the period.