Inheritance tax planning

What is inheritance tax planning?

Inheritance tax planning involves legally reducing the amount of tax payable on your estate when you pass away, ensuring that your assets go to your chosen beneficiaries. Planning ahead allows you to:

• Make use of the nil-rate band and residence nil-rate band
• Utilise annual exemptions and gifting allowances
• Set up trusts for asset protection and tax mitigation
• Claim Business Property Relief (BPR) and Agricultural Property Relief (APR) where available
• Ensure your Will is structured in a tax-efficient way.

How we can help you plan for inheritance tax

We combine technical expertise with a personal approach to inheritance tax planning. Our service includes:

• Initial consultation to understand your family, goals, and financial position
• Full estate review, including property, savings, investments, and business interests
• Personalised inheritance tax strategy with clear actions to reduce your liability
• Implementation support with trusts, gifting, and liaising with your solicitor for Will updates
• Ongoing reviews to adjust your plan if tax laws or your circumstances change.

We explain complex tax rules clearly, so you can make informed decisions about your legacy.

Why choose us for inheritance tax planning?

• Specialist advisors: Experienced in IHT, trusts, and estate structures.
• Proactive planning: Identifying opportunities to reduce tax before it becomes payable.
• Long-term support: Helping you maintain peace of mind as your estate grows and your family’s needs evolve.
• Clear, jargon-free advice: We prioritise straightforward explanations.

Frequently asked questions on inheritance tax planning

Who needs inheritance tax planning?

Inheritance tax planning is important for anyone whose estate may exceed the inheritance tax threshold (£325,000, or £500,000 with the residence nil-rate band). It is especially valuable for homeowners, people with significant savings or investments and business owners with estates or business interests over £1 million. Effective inheritance tax planning can help reduce inheritance tax, use allowances and reliefs efficiently and ensure your assets are passed on to your family in a tax-efficient way.

When should I start inheritance tax planning?

The earlier you start inheritance tax planning, the better your chances of reducing inheritance tax. Planning now allows you to use exemptions, gifting strategies, and reliefs under current rules while preparing for upcoming inheritance tax changes due in 2026. The earlier you plan, the more opportunities you have to reduce inheritance tax, structure your estate efficiently and avoid rushed decisions. Ensuring your family benefits as much as possible from your legacy.

How much is inheritance tax and how is it calculated?

Inheritance tax is typically charged at 40% on the value of your estate above the tax-free thresholds. The nil-rate band is £325,000 and, in certain circumstances, there is an additional residence nil-rate band of up to £175,000 if you pass your home to direct descendants. Your estate includes property, business interests, savings and investments, minus liabilities. An inheritance tax review can help you estimate your potential liability and formulate a plan to reduce inheritance tax efficiently.

Do I have to pay inheritance tax on gifts given before death?

Gifts made within seven years of death may be added back into your estate for inheritance tax purposes. Taper relief may reduce the tax due if the gift was made over three years before death. Following recent announcements, lifetime gifts made after 30 October 2024 will be subject to the new inheritance tax rules if you pass away within seven years, making it important to review your gifting strategy now as part of your inheritance tax planning.

How does Inheritance Tax work for business owners?

Business Property Relief (BPR) can reduce inheritance tax on business assets, often providing up to 100% relief under current rules. However, from April 2026, BPR will be capped at £1 million per person, with 50% relief on excess qualifying assets. There are also similar rule changes to Agricultural Property Relief (APR). AIM shares, which were an option to avoid IHT, certain to subject rules, will from the same date receive only 50% relief. 

Early planning may allow entrepreneurs to consider restructuring their business ownership with lifetime transfers to protect business value and reduce future inheritance tax exposure.

Start planning today

Inheritance tax planning is about protecting your family’s future. We can help you secure your legacy with clear, practical advice.

To find out more about our inheritance planning services or to arrange a free initial consultation, email or call us on 0161 370 9600.

You can also read more about us and the way we work.