What we do / Tax / Inheritance Tax, Trusts & Estates

Bespoke advice for intergenerational planning

We’ll simplify even the most complex areas of trust, estate and Inheritance Tax planning

Inheritance Tax

Inheritance Tax (IHT) is a significant concern for many families. While IHT-free allowances were frozen for many years, average asset values increased. Meaning today, many more estates are looking at hefty IHT charges.

We’ll make a plan, together

Our team has decades of experience solving clients’ intergenerational tax issues, giving everyone a fairer outcome. When we work together, we’ll create a bespoke strategy to reduce your IHT exposure.

Need advice and support from experts you can trust? Here’s where we can help.

  • Advice

    Advice

    Inheritance Tax advice and planning

  • Tax

    Tax

    Tax compliance for trusts, beneficiaries, estates, and the deceased

  • Compliance

    Compliance

    Accounting and compliance for trusts and estates

  • Tax

    Tax

    Capital Gains Tax advice and planning

FAQs

Who pays Inheritance Tax (IHT)?
IHT is primarily a tax that is levied on the estate (property, money and possessions) of someone who has died. However, it can also arise at other lifetime events – for example, if you are the recipients of a large gift i.e. a large sum of money, or a property.
When does an estate start paying IHT?
Only estates valued above a certain threshold will start to pay IHT. That threshold is known as the nil rate band, which is currently £325,000 and has been frozen at that rate for many years. So, if an estate is worth £400,000, you’ll only pay IHT on £75,000 – the value of the estate over the nil rate band.
What does an IHT planning process involve?
IHT planning is a bespoke, and often long term process that involves looking at the details of family wealth. Long-term plans are then developed to manage wealth between generations, and may involve options such as trusts, Family Investment Companies (“FIC’s”) and lifetime gifts.
Are there exemptions from IHT?
There are a number of factors which can affect how much IHT you pay. For example, the nil rate band can be transferred between spouses – and in some cases, the maximum nil rate band a married couple can get can be up to £1 million. There is also an additional nil rate band applied on properties which are listed as main residences. IHT is a complex tax, and there are many exemptions. Alongside the nil rate band, there are reliefs for business property (“BPR”), agricultural assets (“APR”), gifts to charities and spousal gifts.
What is the 7 year period for IHT?
We often talk about a 7 year clock when it comes to IHT planning. This is because where a gift is made more than 7 years before death, no IHT is payable. But gifts made within 7 years of death can form part of the deceased’s estate, and may be subject to IHT. The value of these gifts included in the estate starts to ‘taper’ after three years.

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Let us help you find a better way to manage your intergenerational planning.