Inheritance Tax Planning

Inheritance Tax (IHT) can have a significant impact on the value of the estate you leave behind. With careful planning, there are often steps that can be taken to help preserve more of your wealth for your loved ones.

Does everyone pay Inheritance Tax?

No, IHT only applies where the value of your estate exceeds the available allowances and exemptions. The rate of IHT is currently 40%.

Individuals who have assets in the UK benefit from a standard IHT allowance called the Nil-Rate band. This is currently set at £325,000.

In some circumstances, an additional Residence Nil-Rate Band allowance may be available where a home is passed to direct descendants.

Married couples and civil partners may also be able to benefit from transferable allowances, potentially increasing the amount that can be passed on free of IHT.

There are also various other exemptions and reliefs, for example, in relation to charities, business property and agricultural property.

What IHT planning options are available to me?

There are a wide range of Inheritance Tax planning solutions available, including gifting strategies, trust arrangements, Will planning and the use of available tax reliefs.

The most suitable approach will depend on your personal circumstances, assets and long-term objectives. Seeking specialist advice ensures that any planning is tailored to your individual needs.

Who should seek advice about IHT planning?

IHT planning is important for everyone to consider. In particular, you should seek advice if you:

• Have a partner but you are unmarried/not in a civil partnership
• Own a property or have significant savings and investments
• Expect the value of your estate to increase over time
• Want to pass as much of your wealth as possible to your children, grandchildren or other beneficiaries
• Own a business, agricultural assets, or other valuable property
• Have received an inheritance of your own and are concerned about the future tax implications
• Are making or updating a Will and want to ensure your estate is structured as efficiently as possible
• Have a blended family or more complex family circumstances
• Want to explore options for protecting assets while retaining financial security during your lifetime.

When should I start IHT planning?

Timing is often crucial when it comes to IHT planning. Some planning strategies rely on you surviving for a certain period after they are put in place. Delaying decisions can therefore restrict the options available to you and your family.

Taking advice sooner rather than later can help ensure you have access to the widest range of planning opportunities.

As your circumstances can change throughout your lifetime, it is important to review your IHT position regularly and seek further advice if your personal circumstances or the value of your estate change.

Our IHT specialists can help you

IHT planning is not a one-size-fits-all. What may be effective for one individual or family may be entirely unsuitable for another. Your assets, family circumstances, future objectives and existing arrangements all need to be carefully considered.

Our specialist solicitors provide tailored advice designed around your particular needs and objectives. We can advise on:

• Standalone IHT planning
• IHT planning as part of wider estate planning
• Planning alongside care fees considerations
• Tax-efficient Will drafting and Will reviews
• Reviewing existing arrangements

Contact Us

For more information or expert advice, please contact our specialist inheritance tax solicitors on 0191 232 9547 to make an appointment,