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Inheritance Tax Planning


Prior to the 2017/2018 tax year, any estate over the £325,000 Nil Rate Band (NRB) would be subject to inheritance tax at a flat rate of 40%. For some estates this could result in a significant tax bill being left to loved ones upon the death of a family member.

In 2017, the government gradually phased in a Residence Nil Rate Band (RNRB) over four tax years. The RNRB is an extra NRB available in addition to the general NRB if certain qualifying conditions are met. Broadly, the RNRB will be available if a person’s estate includes their home and it is left to their children or other direct descendants.

Tax year

Maximum RNRB available per person









Is your estate worth over £500,000 individually or £1m jointly?

If so, have you considered the potential tax burden on your loved ones on your death?

There are ways to minimize inheritance tax and make sure that your chosen beneficiaries receive the maximum amount available from your estate. Achieving this, however, relies heavily on future planning, as altering things post death is very difficult. Speak to one of our expert advisors today to find out how we can help you minimise your inheritance tax bill.


Joint Estates

Did you know?

Transfers between married couples and civil partners are not subject to inheritance tax. If the first partner to die leaves their entire estate to the other there is a strong chance that none of their nil-rate band (NRB) has been used. In this instance the deceased’s NRB can be transferred to the surviving party effectively doubling their allowance to £650,000.

Gifting Assets

Did you know?

You can gift away your assets to whoever you wish in order to reduce the size of your estate and your potential IHT bill. The government allows gifts of up to £3000 per year without them being added to the value of your estate. Larger sums made up to 7 years before your death are taxed on a sliding scale known as ‘taper relief’.

Business Relief

Did you know?

Business Relief reduces the value of an estate or its assets when working out how much Inheritance Tax (IHT) has to be paid. There are various types of investment opportunities that qualify for Business Relief (BR) and can be passed on free from IHT after a holding period of just 2 years provided the shares are still held at the time of death.

The Inheritance Tax (IHT) threshold
£0, 000
per person in the UK.
For estates exceeding the IHT threshold
tax is payable.
The government took
in IHT from estates during the 2021/22 tax year.
The average amount of Inheritance Tax paid
£0, 500
in 2018/19.