Inheritance Tax (IHT) Planning

What is Inheritance Tax (IHT)?

Without proper Inheritance Tax (IHT) Planning, up to 40% of your estate could go to HMRC instead of your loved ones. Our expert guidance on IHT, trusts and tax-efficient strategies can help you safeguard your assets and ensure more of your wealth goes to your family - not the taxman.

FREE GUIDE TO IHT & TRUSTS BOOK YOUR IHT CONSULTATION

Inheritance Tax (IHT) Planning | Gifts | Estate Planning | Trusts | Wills

What is Inheritance Tax?

Inheritance Tax (IHT) is a tax on the estate of someone who has passed away, covering everything they own, such as property, money, possessions, cars, jewelry, and investments. In the UK, IHT is typically charged at 40% on estates valued above a certain threshold.

IHT only applies to the portion of the estate that exceeds exemptions. Understanding how IHT works is crucial for effective estate planning, ensuring that your loved ones aren't burdened by unexpected tax liabilities and that your estate is managed according to your wishes.

When someone dies, their legal personal representatives (LPRs), often called executors, are responsible for submitting a report to HM Revenue & Customs (HMRC), detailing the total value of the estate. However, not all of the estate is subject to IHT.

Each individual has a nil-rate band, which is an amount of the estate exempt from tax. Additionally, the residence nil-rate band may apply in certain circumstances, providing further tax relief on the value of the family home.

Successful Inheritance Tax (IHT) Planning should be a continual process, rather than a one-off exercise. Therefore, it is important that you regularly review any IHT arrangements you have made with your financial adviser.

Why is Inheritance Tax Planning Important?

Inheritance Tax (IHT) Planning is about deciding how your assets will be distributed, whilst ensuring it's done in the most efficient way possible.

Reducing Inheritance Tax

Both nil-rate bands (NRBs) are currently frozen. Both will be frozen until 2030. In the meantime, the value of your estate has likely increased, in particular because of a steady increase in house prices during this period. £7.5 billion was collected in IHT receipts by HMRC in the 2023/2024 tax year, representing a 5.6% increase on receipts in 2022/2023.

By taking action today, you can help combat the effects of the frozen NRBs, reducing your estates IHT liability and helping you ensure as much of your wealth as possible is distributed to those you care about.

Peace of Mind

While Inheritance Tax (IHT) efficiency is important, estate planning is about more than just minimising tax. It’s your opportunity to ensure that the people you want to benefit from your estate actually do. With the right plan in place, you can have peace of mind knowing your wishes will be respected.

Using trusts adds an extra layer of protection, allowing you to set aside assets for your chosen beneficiaries. This ensures your wealth is passed on exactly as you intend, giving you confidence that your loved ones will be taken care of.

Understanding and planning for Inheritance Tax (IHT) is crucial for protecting your family's financial future. By taking proactive steps, you can ensure that more of your estate is passed on to your loved ones rather than going to the taxman.

We offer complimentary consultations with a local financial adviser, including a free review of your assets and estate, along with our expert recommendations. There’s no obligation - fees only apply if you choose to proceed with our advice.

BOOK YOUR FREE IHT CONSULTATION GUIDE TO IHT & TRUSTS

Free Inheritance Tax (IHT) Planning Consultation

Ready to take control of your estate and protect your loved ones? Complete the form below to start your personalised Inheritance Tax planning consultation.

Our IHT advisers will review your situation and get in touch with tailored advice to help you minimise liability and pass on more of your legacy.

Inheritance Tax (IHT) Planning - Reduce Your IHT Liability

First Name

Last Name

Contact Number

Email Address

Preferred Method of Contact

Phone

Postcode

Estimated Value of Your Estate

Estimated Value of Pensions

Message

How did you hear about us?

By submitting this form, you consent to our team contacting you by telephone, email, or other digital means regarding your enquiry. Your personal data will be handled securely and in line with our privacy policy.

I consent to being contacted by Beals Mortgage and Financial Services

Looking for a financial adviser near you?

Our first appointment is free of charge and with no-obligation! Available by phone, video call or face-to-face.

Call us on: 01489 585 548

Email us: info@bealsfs.co.uk

BOOK NOWComplaints Privacy Policy & Terms

SAVINGS & INVESTMENTS PENSIONS & RETIREMENT PLANNING INHERITANCE TAX (IHT) PLANNING MORTGAGES & REMORTGAGING WEALTH MANAGEMENT INSURANCE & PROTECTION FINANCIAL PLANNING EQUITY RELEASE

Inheritance Tax Planning, Trusts, Tax Planning, Estate Planning, Will Writing & Powers of Attorney are not regulated by the Financial Conduct Authority.

Tax treatment varies according to individual circumstances and is subject to change.

The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

Approver Quilter Financial Services Limited and Quilter Mortgage Planning Limited. March 2025

Registered office address: Unit 1 Fulcrum 2 Solent Way, Whiteley, Fareham, England, PO15 7FN. Registered in England and Wales under reference 08286166