Take control of your estate planning with clear, practical advice from our experienced inheritance tax planning solicitors. We can help you protect family wealth, reduce future uncertainty and plan with confidence. Call 0800 086 2929, email info@elitelawsolicitors.co.uk or complete our Free Online Enquiry Form to book your free initial consultation.
Inheritance tax planning is a specialist area of estate planning. It considers how inheritance tax may apply to your property, savings, investments, business interests, lifetime gifts and Trust arrangements.
In the UK, inheritance tax can be payable from a person’s estate after death. Certain gifts or Trusts made during lifetime may also affect the overall tax position.
Taking early advice can help you understand your potential inheritance tax exposure and identify practical steps to preserve more of your estate for your chosen beneficiaries.
Our inheritance tax planning advice is tailored to your circumstances, including the value and structure of your estate, your family arrangements, your long-term wishes and any relevant reliefs or exemptions that may be available.
We can advise on Wills, lifetime gifts, Trusts, nil-rate band planning, residence nil-rate band considerations, business and agricultural relief, and succession planning where appropriate.
Expert Inheritance Tax Planning Solicitors
At Elite Law Solicitors, we combine technical legal knowledge with clear, practical guidance so you can make informed decisions about your estate.
Our Private Client team, headed up by Meg Wilton provides specialist legal advice and assistance on Wills, Trusts, probate, estate administration and inheritance tax planning, giving clients access to experienced, senior-led guidance on complex estate planning matters.
We can meet with you at one of Elite Law Solicitors’ offices in Amersham, Bath, Brighton, Guildford, Hitchin, Leighton Buzzard, Milton Keynes, Southampton, Surbiton or Winchester, or provide advice remotely by telephone or video meeting.
If you are looking to structure your financial affairs and would like to speak to one of our inheritance tax planning solicitors, please call us on 0800 086 2929, email info@elitelawsolicitors.co.uk or complete our Free Online Enquiry Form to arrange a free, no-obligation initial discussion.
Is Inheritance Tax charged on everything?
Some assets (such as business interests, agricultural property and some types of investments) benefit from reliefs which mean they are not subject to IHT. Our inheritance tax planning solicitors can advise you on these reliefs and how best to maximise using the reliefs for your estate planning.
Some beneficiaries (such a spouses and civil partners) are exempt from IHT when they receive assets outright, or in the case of spouses and civil partners in certain types of trust.
There are ‘nil-rate allowances’ and the estate within those allowances passes free of tax on death.
What are the Nil-Rate Allowances?
Every individual has a ‘nil rate allowance’ which is currently £325,000 which applies to any assets passing to any beneficiary. This allowance is reduced by the chargeable value of gifts made by a person in the 7 years prior to death. Where the chargeable value of gift made in the 7 years prior to death exceeds £325,000 the gifts in excess of the ‘nil rate allowance’ will be subject to tax following death.
If a person who is married or in a civil partnership does not use all of their nil rate allowance (for example because their estate has passed wholly or in part to exempt beneficiaries such as their spouse or civil partner), any unused allowance can be transferred to the estate of their spouse or civil partner on their death. The transfer of the allowance can only be applied for on the death of the surviving spouse or civil partner so it is important for appropriate records to be kept to ensure the unused allowance can be claimed.
In 2017 a ‘main residence allowance’ was introduced. This allowance is currently £175,000 and is available where a person owns a property which passes to direct descendants. The allowance can also be claimed where a person owned a property when the allowance was introduced which has subsequently been sold and their estate holds the proceeds of sale of that property which pass to direct descendants. Direct descendants include a persons children and their descendants and a persons step-children and their descendants with step-children being defined as the children of a person’s spouse or civil partner.
Any unused main residence allowance can be transferred to a person’s surviving spouse or civil partner in the same way that the nil-rate allowance can.
Our inheritance tax planning solicitors can advise you on how to ensure that you are utilising all available nil rate allowances whilst leaving your estate to your chosen beneficiaries.
Who pays the Inheritance Tax?
Inheritance tax due on death from estate assets must be paid by the Executors from the estate.
Executors must prepare and submit an inheritance tax account and make arrangements for a portion of the tax due to be paid prior to obtaining a Grant of Probate to deal with an estate.
Our lawyers can advise you how much tax will be due from your estate and approximately how much will need to be paid on account before a Grant of Probate can be obtained so you can ensure that your Executors will be able to arrange payment of that tax from your assets.
Inheritance tax due from the recipients of lifetime gifts in excess of the nil-rate allowance will be due from the recipients of those gifts. Our inheritance tax planning solicitors can advise you on this point and, if you prefer that this tax is paid from your estate, can ensure that your Will makes the appropriate provisions.
Can I make gifts during my lifetime without paying Inheritance Tax?
If you make outright gifts (of money, items, property, land etc) during your lifetime those gifts are not subject to IHT when they are made and are potentially exempt transfers (PETS).
The gifts made in the 7 years prior to your death will be taken into account in calculating the tax due on your death. If the gifts made in the 7 years prior to death exceed the nil-rate allowance the gifts in excess of the allowance will be subject to tax on your death. Taper relief reduces the rate of tax due on those gifts if 3 years have passed since the gift was made.
If you live for 7 years after making an outright gift it is not subject to IHT.
You must fully part with the gift, if you give away an asset (such as a house) but then continue to use it or benefit from it (i.e. live it in or receive rental income from it), HMRC will deem that you have reserved benefit over it and the asset will still be taken into account in calculating the IHT due on your death even if you no longer own the asset.
Gifts into Trust may be subject to IHT during your lifetime. If gifts into Trusts do not exceed the nil-rate allowance (£325,000) in any 7 year period they will not be taxed during your lifetime but will be brought into account on your death in the same way as outright gifts. If you gift more than the nil-rate allowance into Trusts in any 7 year period there is an IHT charge at 20% on the amount over the nil-rate allowance. If you die within 7 years there is a further 20% IHT charge following your death.
Outright lifetime gifts to exempt beneficiaries (charities, spouses and civil partners) are not subject to IHT.
There are some gift allowances which can be utilised which include the following:
Inheritance tax annual exemption
You are allowed to make one IHT-free gift of up to £3000 per tax year. This sum can be given to one person or shared between as many people as you choose. This allowance can be carried forward one tax year so if you do not use the allowance one year you can gift £6,000 the following year.
Inheritance tax small gifts exemption
You can make small gifts of up to £250 per year to as many recipients as you like. These cannot be the people who have received a gift made using your annual exemption. As long as you do not give one person more than £250, you can distribute as much cash as you wish and can continue to do so every year.
Wedding or civil partnership gifts
If a friend or relative is getting married or entering into a civil partnership, you are allowed to give them an IHT-free gift. The specific amount you are allowed to give without incurring IHT changes depending on your relationship to the recipient: if they are your child, you can give up to £5000; your grandchild or great-grandchild, £2500; and anyone else you can gift £1000 IHT-free.
Gifts out of income exemption
If you make gifts regularly (for example monthly or annually) to one person, they can be exempt from IHT if they come from your regular surplus income. This does not have to mean your wage but can also mean your pension, dividends, or interest from investments or savings accounts. As long as the gift does not affect your lifestyle and is made from income and not capital, it can be made free from IHT.
Our lawyers can advise you how to calculate your excess income and what records HMRC will require for this exemption to be claimed.
The importance of having an up to date Will
Preparing a Will gives you peace of mind and ensures all your affairs are in order – including matters relating to inheritance. Creating a Will is an excellent start, but you should also take time to keep your Will maintained and up to date. By doing so, you can ensure any recently gained assets, such as property, money, and personal belongings, are included in your Will. A valid and up-to-date Will can also make the probate process more manageable, ensuring all inheritance taxes and other fees are paid on time with no confusion and added stress.
Do I need to instruct Inheritance Tax Planning Solicitors?
The rules and processes involved in inheritance tax planning can often be extremely complex. Working with appropriately experienced inheritance tax planning solicitors can ensure everything is on the right track and your finances are prepared far in advance. Our Private Client Solicitors have the knowledge and expertise to support you in relation to inheritance tax planning, ensuring you don’t fall into any traps and providing the guidance needed for peace of mind in managing your estate.
To find out exactly how inheritance tax will affect you and how best to make IHT-free gifts to minimise this impact, you should talk to a solicitor with experience in trust laws and tax exemption.
Our inheritance tax planning solicitors have extensive experience helping clients with estates of all sizes structure their assets in as tax-efficient a way as possible. We offer a comprehensive and knowledgeable service, drawing on our firm’s expertise in property law and estates administration.
Our Private Client department can also assist with a broad range of related legal matters, helping individuals and families plan for the future, protect assets, manage estate administration responsibilities and ensure their wishes are clearly documented. Whether you require support with succession planning, tax considerations, trust arrangements or making provision for loved ones, our team can provide clear, practical and personalised advice.
- Trusts
- Wills
- Powers of Attorney
- Probate and Estate Administration
- Estate Planning
- Declarations of Trust
- Islamic Estate Planning, Wills and Lasting Powers of Attorney
How much do Inheritance Tax Planning Solicitors charge?
The fees charged by inheritance tax planning solicitors will vary depending on the complexity of your estate, the guidance you are looking for, and any other additional services relating to your Will you may require. Our specialist team of inheritance law specialists at Elite Law Solicitors can provide you with a quote for our specific services based on your goals and requirements following a free initial meeting.
Specialist Inheritance Tax Planning Solicitors
Our services are cost-effective and competitive, and we will always give you a clear indication of our charges. We are happy to provide one-off advice at certain points of the legal process or on particular areas of concern as they arise.
One of our experienced inheritance tax planning solicitors will have an initial consultation with you, free of charge, to discuss your situation in more detail. Once we understand your circumstances better, we can provide you with a clearer understanding of how we can help you.
In addition to office meetings, we also offer virtual meetings via telephone or video conferencing software such as Microsoft Teams and can assist you wherever you are based.
To book a free initial consultation with one of our specialist inheritance tax planning solicitors, please call 0800 086 2929, email info@elitelawsolicitors.co.uk or complete our Free Online Enquiry Form.
Inheritance Tax Planning Solicitors: Frequently Asked Questions
How can I reduce inheritance tax legally in the UK?
There are several legitimate inheritance tax planning strategies that may help reduce the value of your taxable estate, including reviewing your Will, making lifetime gifts, using available exemptions, considering Trusts where appropriate, and structuring assets to make full use of inheritance tax reliefs. The best approach will depend on your family circumstances, the value and type of your assets, and your long-term wishes, so tailored advice from inheritance tax planning solicitors is strongly recommended.
When should I start inheritance tax planning?
It is usually sensible to start inheritance tax planning as early as possible, particularly if your estate includes property, savings, investments, business interests, or assets that may increase in value over time. Early estate planning gives you more options, especially where lifetime gifting, Trust planning, or succession planning may form part of your strategy. However, it is never too late to seek advice from inheritance tax planning solicitors, even if you simply want to review your current Will and estate arrangements.
Can inheritance tax planning help if I own a property or second home?
Yes. Property is often one of the main reasons an estate becomes liable for inheritance tax, particularly where house prices have increased significantly. Inheritance tax planning for property owners may involve reviewing how your property is owned, who will inherit it, whether the residence nil-rate band may apply, and whether any lifetime planning is appropriate. If you own more than one property, buy-to-let property, or property with another person, inheritance tax planning solicitors can help ensure your estate plan is structured carefully.
Does inheritance tax apply to pensions?
Pensions can be treated differently from other estate assets, and the inheritance tax position will depend on the type of pension, how it is structured, who is nominated to receive it, and the tax rules in force at the relevant time. Because pension and inheritance tax rules can be complex and subject to change, it is sensible to review pension nominations alongside your Will and wider estate planning. Our inheritance tax planning solicitors can work with your financial adviser where appropriate to help ensure your arrangements are aligned.
Can leaving money to charity reduce inheritance tax?
Gifts to UK-registered charities are generally exempt from inheritance tax. In some cases, leaving a sufficient proportion of your estate to charity may also reduce the rate of inheritance tax payable on the rest of your estate. If charitable giving is important to you, inheritance tax planning solicitors can advise on how to include charitable gifts in your Will in a way that reflects your wishes and supports efficient estate planning.
What happens if my estate includes a business or agricultural assets?
Some business assets, shares, and agricultural property may qualify for valuable inheritance tax reliefs, but the rules are detailed and the availability of relief will depend on the nature of the asset, how it is owned, and how it is used. Business succession planning and inheritance tax advice should be considered together, particularly for family businesses, farms, partnerships, and company shareholders. Early advice from inheritance tax planning solicitors can help protect value for the next generation and reduce the risk of unexpected tax liabilities.
Can I use life insurance for inheritance tax planning?
Life insurance does not usually reduce the value of your estate by itself, but it can help provide funds to meet an inheritance tax liability if it is arranged correctly. Policies are often written in Trust so that the proceeds do not fall into the taxable estate and can be accessed more efficiently by the intended beneficiaries. It is important to take legal and financial advice from inheritance tax planning solicitors and a financial adviser before relying on life insurance as part of an inheritance tax planning strategy.
Do unmarried couples have the same inheritance tax allowances as married couples?
No. Unmarried partners do not benefit from the same inheritance tax spouse exemption or transferable nil-rate band rules as married couples and civil partners. This can make advice from inheritance tax planning solicitors especially important for cohabiting couples, even where they have lived together for many years. A carefully drafted Will, together with appropriate estate planning advice, can help protect a partner and reduce the risk of unintended tax consequences.
How often should I review my inheritance tax planning arrangements?
You should review your inheritance tax planning arrangements whenever there is a major change in your personal, financial, or family circumstances. This may include buying or selling property, marriage or divorce, the birth of children or grandchildren, receiving an inheritance, changes in business ownership, or significant changes in asset values. Regular reviews with inheritance tax planning solicitors also help ensure your estate plan remains effective if inheritance tax rules or allowances change.
Can Elite Law Solicitors help with inheritance tax planning alongside Wills, Trusts and probate?
Yes. Our inheritance tax planning solicitors can advise you as part of a wider estate planning review, including Wills, Trusts, lifetime gifts, probate considerations, and succession planning. This joined-up approach helps ensure your legal documents, tax planning objectives, and family priorities work together. To discuss your circumstances, contact Elite Law Solicitors for clear, practical inheritance tax advice tailored to your estate.
Contact our Inheritance Tax Planning Solicitors
If you are concerned about how inheritance tax could affect your estate, taking early legal advice can make a significant difference. At Elite Law Solicitors, our inheritance tax planning solicitors provide clear, practical and tailored guidance to help you protect your assets, make the most of available allowances and reliefs, and pass on more of your estate to the people and causes you care about.
Whether you are reviewing your Will, considering lifetime gifts, setting up a Trust, planning for property or business assets, or simply want to understand your inheritance tax position, our experienced team can help you put the right arrangements in place with confidence.
Speak to our inheritance tax planning solicitors today for a free, no-obligation initial discussion. Call 0800 086 2929, email info@elitelawsolicitors.co.uk or complete our Free Online Enquiry Form and a member of our team will be in touch.[/vc_column_text][/vc_column][/vc_row]
