For You / Inheritance Tax Planning

For individuals & families

Estate Planning & Inheritance Tax

Inheritance tax affects more families than ever. We help you understand your position, plan ahead, and pass on more of what you have built.

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Overview

Passing on more of what you have built

Inheritance tax used to feel like a problem for other people. That has changed. Frozen allowances, rising property and pension values, and the Finance Act 2026 reforms mean far more families are now in scope, often without realising it.

We start by looking at your estate as a whole. Property, pensions, investments, business interests, life cover and gifts already made. We work out what would be due if nothing changed, then show you the practical steps that can reduce it without disrupting your life today.

The aim is simple: more of your wealth reaching the people you want it to reach, with less of it lost along the way.

What we cover

  • A clear view of your estate
  • Working out your IHT position
  • Using allowances and exemptions properly
  • Lifetime gifting and the seven-year rule
  • Trusts where they earn their place
  • Pension legacy planning (post-April 2027)
  • Working with your solicitor

In detail

Finance Act 2026 changes worth understanding

If you last reviewed your estate a few years ago, the rules underneath that plan have moved. These are the changes that affect most families.

01

Frozen allowances

The £325,000 nil-rate band and £175,000 residence nil-rate band are frozen until 2030. As estates grow, the tax-free portion stays the same. More families cross the threshold every year.

02

Capped business and farm reliefs

Business Property Relief and Agricultural Property Relief are now capped at £1 million per person. Anything above that gets 50% relief, not 100%. For families with significant business or farm interests, planning has changed materially.

03

Pensions in your estate from 2027

From April 2027, defined contribution pensions count as part of your estate for inheritance tax. Pensions that used to pass tax-free to family will now often face 40% IHT on top of any income tax the recipient pays.

04

What you can do now

Use your annual gifting allowances. Review pension nominations and how you draw income. Consider whether earlier gifts to family make sense. Check whether existing trusts are still appropriate.

05

Working with your solicitor

Estate planning is rarely just about tax. Your will, any trusts, and how the estate is administered all matter. We coordinate with your solicitor so the financial and legal sides work together.

06

Family conversations

The plans that work best are the ones the family understand and support. Where it helps, we are happy to be in the room when you talk to children or other family members about what is being put in place.

Common questions

Frequently asked questions

What is the inheritance tax threshold in the UK?

The standard nil-rate band is £325,000 per person. Any unused nil-rate band can be transferred from a deceased spouse or civil partner, giving a combined threshold of up to £650,000. An additional residence nil-rate band of up to £175,000 per person applies when a main residence is left to direct descendants, potentially allowing a couple to pass up to £1 million free of inheritance tax, subject to estate size thresholds.

What are the main ways to reduce an inheritance tax bill?

The main options include: making use of annual gift exemptions and potentially exempt transfers; placing assets into trusts; investing in Business Relief qualifying assets such as certain AIM-listed shares; making use of the residence nil-rate band; and, until April 2027, preserving pension wealth outside the estate. From April 2027, pensions will come within the scope of IHT, which changes the planning landscape significantly.

How does Business Relief reduce inheritance tax?

Business Relief (BR) provides up to 100% relief from inheritance tax on qualifying business assets and certain investments, including shares in qualifying AIM-listed companies held for at least two years. The asset remains in the estate but is exempt from the IHT charge. BR investments carry higher investment risk than mainstream assets and are not suitable for all investors.

Does the Finance Act 2026 change inheritance tax on pensions?

Yes. From 6 April 2027, unspent pension funds will be brought within the scope of inheritance tax for the first time, under the Finance Act 2026 and Pension Schemes Act 2026. Previously, pensions sat entirely outside the estate for IHT purposes. This is one of the most significant changes to UK estate planning in a generation and affects anyone with a meaningful pension pot.

See how we helped

Helping a family review their inheritance tax exposure

A real, anonymised example of this advice in practice.

Read the case study

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The Financial Conduct Authority does not regulate Wills, Trusts, Tax advice or Cash Flow Planning. Tax treatment depends on individual circumstances and may be subject to change in the future. The value of your investments can go down as well as up, so you could get back less than you invested.