Inheritance Tax Planning

Expert advice, by your side

We will assist our clients to preserve and grow their wealth taking into consideration their personal circumstances, aims and objectives. Inheritance tax planning forms an integral part of such assistance.

Every person in the UK is liable for inheritance tax (IHT) if their estate exceeds the limit of the nil-rate threshold. Items that add to an estate’s value include real estate property, art, cars, investments, savings and jewellery.

The nil-rate band is the value of your estate that is not chargeable to IHT. The amount is set by the government and is currently £325,000 which is frozen until 2026. The nil-rate band does not apply to spouses and civil partners as they are exempt from paying inheritance tax on the estates of their significant others. This is also true of other qualifying beneficiaries, such as charities.

In addition, since 6 April 2017, if you leave your home to direct lineal descendants which includes amongst others your children (adopted, fostered and stepchildren) and grandchildren. The value of your estate before tax is paid, will increase with the addition of the residence nil-rate band. For the 2020/2021 tax year, the residence nil-rate band is £175,000.

Inheritance tax is a complex issue, and it is essential that any efforts to reduce or mitigate its effects are fully in line with the law.

Any person with assets above the nil-rate band threshold, should consider their options.

There are numerous steps that can be taken to reduce or mitigate inheritance tax. These include the following:

Estate Planning, Trusts and Taxation advice are not regulated by the Financial Conduct Authority.