Inheritance Tax Planning

Passing on your wealth to loved ones and providing for your family is a priority. We understand this is a sensitive topic but an important one to have. With our Inheritance Tax Planning service, you will minimise your inheritance tax and maximise what your beneficiaries receive. 

Why Inheritance Tax planning matters more than ever

Recent changes in the 2024/25 Budget may appear minor at first glance, but they carry major implications. With frozen thresholds and rising asset values — especially for property, pensions, and business assets — more estates are being drawn into the IHT net.

Small oversights today could cost your family thousands tomorrow. Effective planning now can make all the difference.

How we help you plan smarter 

Our team provides tailored advice and practical solutions to protect your legacy, including:

We take time to understand your family dynamics, business interests, and personal wishes. With this insight, we create a bespoke strategy that helps reduce HMRC’s claim on your estate.

“They helped us preserve our family wealth through smart, compassionate planning.” — A recent client

What Inheritance Tax will you pay?

Inheritance Tax is typically charged at 40% on the value of your estate above certain thresholds.

For the 2025/26 tax year:

  • Nil Rate Band: £325,000
  • Residence Nil Rate Band: £175,000 (if your home is passed to direct descendants)
  • Combined, this offers £500,000 per person, or £1 million for married couples/civil partners if unused allowances are transferred.

Example: A married couple with a family home

Estate value: £1.2 million
Allowances: £1 million (combined)
Taxable estate: £200,000
Potential IHT bill: £80,000

With careful planning, this could be reduced significantly.

Because IHT can be a complex and often sensitive issue, seeking professional advice is highly recommended. Our team of specialists can help you explore various strategies to potentially reduce or even avoid IHT liabilities, and share a calculation of how much inheritance tax your loved ones will pay.

Email us at enquiries@a4g-ll.co.uk, or call 01474 853 856. 

Why get advice on Inheritance Tax planning? 

  • Up to 40% of your estate could be lost to IHT without proper planning
  • IHT planning is complex, with ever-changing rules and exemptions. Professional advice simplifies this process
  • Professional advice can help you navigate these complexities and ensure your wishes are met, protecting your estate
  • Increase your estate’s value

Common ways to reduce IHT

  • Gifting assets during your lifetime
  • Using annual exemptions like the £3,000 gift allowance
  • Charitable donations in your will
  • Trusts to control and protect wealth
  • Business & Agricultural Relief for qualifying assets
  • Leaving everything to your spouse (tax-free transfer)

Common mistakes that can cost you

  • Leaving it too late – Waiting too long to plan can limit your options and increase tax exposure

  • Assuming you’re under the threshold – Rising property values mean more estates are now liable for IHT

  • Not reviewing your will after major life events – Divorce, remarriage, or a new child? Your will may need updating

  • Relying solely on the nil rate band – The £325,000 allowance may not stretch as far as you think

  • Overlooking the value of pensions and life insurance – These can unexpectedly push your estate over the limit.

  • Using trusts incorrectly or not at all – Trusts are powerful tools, but they must be set up and managed properly

Inheritance Tax FAQs

Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who has died. It may also be payable on some lifetime gifts.

For the 2025/26 tax year, the standard IHT threshold (Nil Rate Band) is £325,000.

There’s also a Residence Nil Rate Band of £175,000, which applies if you pass on your main residence to direct descendants (children, grandchildren etc.). This means a potential total of £500,000 IHT allowance per person.

Married couples and civil partners can pass their allowances to each other, potentially creating a £1 million allowance.

IHT is usually payable within six months of the end of the month in which the person died.

  • Gifting: Giving away assets during your lifetime can reduce the value of your estate. Some gifts are immediately exempt (like small gifts up to £250), while others become exempt after 7 years (Potentially Exempt Transfers).
  • Using your allowances: Make full use of the Nil Rate Band and Residence Nil Rate Band.
  • Leaving assets to a spouse or civil partner: Transfers to spouses and civil partners are usually exempt from IHT.
  • Charitable donations: Leaving money to charity in your will is exempt from IHT.
  • Business Property Relief and Agricultural Relief: These reliefs can reduce or eliminate IHT on certain business assets and agricultural land. Find out more on how Business Property Relief works.
  • Trusts: Placing assets in a trust can help to manage and potentially reduce IHT liability.

A PET is a gift made by an individual to another individual during their lifetime. If the donor survives for 7 years after making the gift, it falls outside of their estate for IHT purposes.

If you die within 7 years of making a PET, the gift may still be subject to IHT. However, the amount of tax due may be reduced on a sliding scale (taper relief) depending on how many years have passed since the gift was made.

There’s no limit to the value of a PET, but it’s important to be aware of the 7-year rule and potential tax implications if you die within that period. There are also annual gift allowances, such as the £3,000 annual exemption.

IHT planning can be complex, so it’s often advisable to seek professional advice. Wecan help you create a personalised plan to minimise your IHT liability.