Inheritance Tax Planning

How inheritance tax works

In simple terms, inheritance tax is charged at 40% on the value of your estate above your available tax-free allowances. Most people have a nil-rate band, and homeowners passing their home to direct descendants may also qualify for the residence nil-rate band, which can lift the threshold considerably for a married couple. The rules are detailed and change over time, so it's worth understanding exactly where you stand.

Ways to plan

Depending on your circumstances, planning might involve:

• making full use of your available allowances and exemptions;
• lifetime gifting, using annual and other exemptions;
• gifts out of surplus income;
• trusts, where appropriate, to control and protect assets;
• charitable giving, which can also reduce the rate of tax on the rest of your estate;
• making sure life insurance is written in trust so it doesn't add to your estate.

We'll show you which of these fit your situation and quantify the potential savings.

Honest scope, where we refer you on

We provide estate structuring advice. Where a solution involves regulated financial products, such as certain investments, pensions or life policies, that's regulated financial advice, and we'll refer you to a trusted, authorised financial adviser rather than advise on the product ourselves. That keeps you properly protected and gets you the right expertise for each part of the plan.

How it works

Start with a free review of your estate, in person across Yorkshire or online anywhere in England & Wales. We'll explain your likely IHT position, set out practical options with fixed fees, and coordinate with your other advisers where needed.