More to your family, less to HMRC.
Inheritance tax catches more estates every year as thresholds stay frozen. With planning — started early — the bill is often substantially reducible. Sometimes eliminated entirely.
IHT planning is a decade-long conversation.
Inheritance tax is 40% on the value of an estate above the available allowances. With house prices where they are and the nil-rate band frozen until 2030, many ordinary families — not just the very wealthy — are now in scope.
Most of the useful tools take time to work. Gifts need seven years to fall fully outside the estate. Business and agricultural relief require holdings for at least two years. Trusts have their own setup time and rules. The earlier the planning starts, the more levers there are to pull.
Done well, IHT planning works quietly in the background of your wider financial plan — using the right wrappers, the right gifting cadence, the right policies in trust — rather than leaving the family with a 40% bill that nobody saw coming.
The cost of doing nothing.
Inheritance tax is one of the most avoidable taxes there is — if you start in time.
With planning in place
- Annual exemptions and gift allowances used consistently every year
- Larger gifts timed and recorded so the 7-year clock starts properly
- Pensions used as a tax-efficient wrapper for as long as possible
- Business and agricultural relief claimed where available
- Life cover written into trust to pay any residual bill outside the estate
- Coordinated with wills, LPAs and any letters of wishes
Without it
- Annual allowances unused year after year — gone for good each April
- Family surprised by a six-figure IHT bill they have to pay before probate
- House sold under pressure to cover the tax bill
- Pensions drawn down too quickly, losing their IHT efficiency
- Life policies inside the estate, with 40% taken off the top
- Last-minute deathbed planning that doesn’t qualify for reliefs
Strategy, not product pushing.
A four-step process that’s the same for every client — though the conclusions never are.
Map the estate
Everything you own, where it’s held, what it’s worth, what reliefs already apply, and where the family wants it to go.
Model the IHT bill
What HMRC would take today, and how that changes with different gifting, trust, and pension strategies. Real numbers, real timelines.
Put the structure in place
Gifts made and documented, trusts set up where appropriate, life cover written into trust, pensions structured for efficiency.
Keep it relevant
Tax rules change frequently in this space. The plan needs an annual review — not least to track the 7-year clock on each gift.
Things people often ask.
How big does an estate have to be before IHT bites?
Currently £325,000 (the nil-rate band), with up to another £175,000 (the residence nil-rate band) where a home is passed to direct descendants. So a couple can potentially pass on up to £1m IHT-free. Anything above that is taxed at 40% — and house prices have pushed many ordinary estates above the threshold.
How much can I gift each year without IHT?
£3,000 a year is exempt outright (the annual exemption). Plus unlimited small gifts of £250, regular gifts from surplus income, and wedding gifts of up to £5,000 to a child. Larger gifts fall outside the estate after seven years.
What about putting things into trust?
Trusts can move assets outside the estate while keeping some control over how they’re used. They have their own tax treatment and ongoing rules, so they need to be chosen carefully — not used as a default solution.
Do my pensions count for IHT?
Most modern pensions sit outside the estate for IHT under current rules — one reason they’re often drawn down last. This area is under active government review, so the planning needs to flex with the rules.
What is Business Relief?
Business Relief (BPR) reduces or removes IHT on qualifying business assets held for at least two years. It can be a powerful tool for business owners, AIM-portfolio investors, and certain other holdings — but the rules are specific and worth professional advice on.
When should I start IHT planning?
Honestly — from your fifties onwards if there’s likely to be an IHT liability. Earlier still if there’s significant business or property wealth. The seven-year rule means starting late narrows the options.
Let’s start with a conversation.
An initial IHT review is without obligation. The first step is just understanding the size of the potential bill — and which levers would move it.