Who we serve
Inheritance tax planning for families.
Passing on wealth well takes time. We help families plan inheritance tax early and calmly, in step with their solicitor and financial planner.
Inheritance tax, planned early.
Frozen thresholds and new rules mean more families are paying inheritance tax, and older plans may no longer work as intended.
We look at the family's wealth as a whole (the family home, investments, pensions, businesses) and help you pass it on in the way you want, at the lowest tax cost the rules allow.
Where it gets complicated.
The issues we see most often, and plan for.
Frozen thresholds
The £325,000 nil rate band and £175,000 residence nil rate band are frozen until April 2031. The residence band tapers away above a £2m estate.
Gifts & seven years
Annual exemptions, gifts out of surplus income, and taper relief on larger gifts.
Pensions from April 2027
Unused pension funds and most death benefits come into the estate for inheritance tax.
Business & farm property
From April 2026, full relief stops at £2.5m per person, and value above that gets 50% relief. AIM shares get 50%.
Trusts
A 20% entry charge above the nil rate band, and ten-year charges of up to 6%.
The next generation
Passing shares or property on, with capital gains tax and inheritance tax considered together.
Inheritance tax on the family home.
On top of the £325,000 nil rate band, the residence nil rate band of £175,000 applies when a home, or its sale proceeds, passes to children or grandchildren. Both bands pass to a surviving spouse or civil partner, so a couple can leave up to £1 million free of inheritance tax.
The residence band is withdrawn by £1 for every £2 the estate exceeds £2 million, so a single estate worth £2.35 million or more loses it completely. Lifetime gifts, pension planning and the order of deaths can all change the outcome.
Gifting money to children.
- Annual exemption: £3,000 a year, plus one unused year carried forward
- Small gifts: up to £250 per person, per year
- Wedding gifts: up to £5,000 from a parent, £2,500 from a grandparent, £1,000 from anyone else
- Gifts out of surplus income: regular gifts from income, not capital, that leave your standard of living unchanged, with no upper limit
- Larger gifts: outside the estate if you survive seven years; taper relief reduces the tax on gifts above the nil rate band made three to seven years before death
Giving away something you continue to benefit from, such as a home you still live in rent-free, generally doesn't work for inheritance tax.
Inheritance tax on pensions from April 2027.
From April 2027, unused pension funds and most death benefits count towards the estate for inheritance tax. Where death is after 75, beneficiaries may also pay income tax on what they draw. For many families that reverses the long-standing advice to spend other assets first and leave the pension untouched.
Family businesses and farms.
From 6 April 2026, 100% business and agricultural property relief is capped at a £2.5 million allowance per person, transferable between spouses, with 50% relief above it. Shares quoted on AIM qualify for 50% only. Inheritance tax on these assets can usually be paid in interest-free instalments over ten years. Succession plans written before these changes should be reviewed.
When is inheritance tax paid?
Inheritance tax is normally due six months after the end of the month in which the person passed away, and HMRC charges interest on anything paid later. Tax on some assets, such as property, can be paid in instalments. Planning ahead makes sure the estate has the funds available when they are needed.
Common questions.
Earlier than most people think. Lifetime gifts need seven years to fall fully outside the estate, and many reliefs depend on how long assets have been held.
You can, but if you keep living in it without paying a full market rent, it is generally still treated as part of your estate. Gifts of property can also trigger capital gains tax, so the options need modelling first.
Regular gifts made from surplus income, not capital, that leave your standard of living unchanged. They are immediately exempt with no upper limit, but good records are essential.
Unused pension funds and most death benefits will count towards the estate for inheritance tax. For many families that changes the order in which assets should be used and passed on.
Six months after the end of the month of death. Interest is added after that. Some assets, such as property and qualifying business assets, can be paid in instalments.
Google review
“We have been with Akash for the last 3 years, he's always been professional and extremely helpful. Any questions are only a WhatsApp or email away, he would usually reply within the next working day.”
Start with a conversation.
Everything starts with a consultation. It is confidential and there is no obligation.