Inheritance Tax Planning

Inheritance Tax (IHT) is charged at 40% on estates above the nil-rate band — potentially the largest single tax bill your family will ever face. With the right planning, much of it can be reduced or eliminated entirely. We help you protect what you've built for the people who matter most.

40%

IHT rate on estates above the threshold

£325k

Nil-Rate Band (NRB) per person

£175k

Residence Nil-Rate Band (RNRB) if passing home to descendants

7 years

Gifts become exempt from IHT after 7 years

IHT Calculator

Estimate your potential Inheritance Tax liability. Adjust the values below to see how reliefs, exemptions, and the nil-rate bands affect your estate.

Your Estate Details

Include property, savings, investments, pensions (if applicable), and other assets.

Value of your main home if passing to direct descendants.

Potentially exempt transfers (PETs) made in the last 7 years.

Children, grandchildren, or stepchildren — determines RNRB eligibility.

Qualifying unquoted shares, sole trader businesses, or partnership interests.

Agricultural value of qualifying farmland and farm buildings.

IHT Calculation

Total estate value£750,000
Less: Nil-Rate Band (NRB)-£325,000
Less: Residence Nil-Rate Band (RNRB)-£175,000
Taxable estate£250,000
IHT liability at 40%£100,000
Effective tax rate13.3%

Estate Breakdown

Nil-Rate Band: £325,000
Residence Nil-Rate Band: £175,000
Taxable Estate: £250,000
IHT Liability (40%): £100,000

Disclaimer: This calculator provides an indicative estimate only and does not constitute tax advice. IHT rules are complex and depend on individual circumstances. Married couples and civil partners can transfer unused nil-rate bands. Please consult a qualified adviser for personalised guidance.

How We Can Help

Our IHT planning services are designed to minimise the tax burden on your estate while ensuring your assets pass to your chosen beneficiaries as efficiently as possible.

Estate Planning Review

A comprehensive review of your estate, assets, liabilities, and existing planning to identify IHT exposure and opportunities for mitigation.

Trust Structuring

Advice on discretionary trusts, bare trusts, interest-in-possession trusts, and loan trusts to shelter assets from IHT while maintaining flexibility.

BPR & APR Optimisation

Maximise Business Property Relief and Agricultural Property Relief by ensuring qualifying conditions are met and ownership structures are optimal.

Lifetime Gifting Strategy

Plan gifts to utilise annual exemptions, normal expenditure out of income, and the seven-year rule with taper relief to reduce your taxable estate.

Will Review Coordination

Work with your solicitor to ensure your will is tax-efficient, takes advantage of the transferable nil-rate band, and reflects your estate plan.

Ongoing Compliance & Reporting

Annual reviews of your estate plan, IHT projections, and reporting to keep your planning on track as legislation and circumstances change.

Key IHT Planning Strategies

There are many legitimate ways to reduce your IHT exposure. Here are the most common.

Utilise the Nil-Rate Band and RNRB+

Every individual has a £325,000 NRB. If you leave your main residence to direct descendants, you may also qualify for the £175,000 RNRB. Married couples can transfer unused bands — potentially sheltering up to £1,000,000.

Make Use of Annual Gift Exemptions+

You can give away £3,000 per tax year free of IHT (£6,000 if you carry forward an unused allowance). Small gifts of up to £250 per recipient and wedding gifts are also exempt.

Normal Expenditure Out of Income+

Regular gifts made from surplus income (not capital) are immediately exempt from IHT — with no upper limit. This is one of the most powerful but under-used exemptions.

Business Property Relief (BPR)+

Qualifying business assets held for at least 2 years can attract 100% relief from IHT. This includes unquoted trading company shares, sole trader businesses, and certain AIM-listed shares.

Agricultural Property Relief (APR)+

Agricultural land and buildings used for farming purposes can qualify for 100% IHT relief, provided ownership and occupation conditions are met.

Trusts and Life Insurance+

Placing assets into trust can remove them from your estate for IHT. Writing a life insurance policy in trust ensures the payout goes directly to beneficiaries without increasing the estate.

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Start Planning Your Estate Today

Every day without a plan is a day your family's inheritance is unprotected. Book a free initial consultation and let us show you how to reduce your IHT exposure.