IHT is charged at 40% on assets including your home, any other properties you own, your savings and investments, including any ISAs, your car and any personal possessions.
As the UK Government has now frozen the IHT threshold at £325,000 until 2028, it is expected that more individuals will now fall into this tax trap.
If you want to know more about how we can help you manage, plan or invest for your future, please contact us.
Nicholas has been an excellent steward of the assets I inherited, and helped me to plan financially for the future. He has also been a much-valued liaison between the firm of solicitors dealing with several deaths in my family and helped transfer funds and assets into my investment portfolio tax-efficiently.
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Inheritance Tax FAQs
The IHT nil-rate band has been fixed at £325,000 since 2009 and was again frozen in 2022 until 2028.
Pensions are unusually exempt from Inheritance tax however there are instances where this is not the case. While usually free of Inheritance Tax, pensions can be subject to Income Tax if death is after age 75, so it is important to seek advice when thinking about how to pass on your estate in a tax-efficient manner.
The Nil Rate Band (NRB) is the limit at which you do not have to pay IHT on your estate. The NRB is currently £325,000 per person or £650,000 for a married couple.
Each person's estate can benefit from the NRB. A 'residence nil rate band' may be available in addition to the NRB.
Why not calculate the value of your estate and the assets that would be liable to IHT, as they are now, using our free calculator? This will give you a baseline with which to start planning and a steer of what your potential IHT bill might be.
This calculator should take no more than 5 minutes to complete and at the end, you can download a tailored report that provides some tips on how to manage your IHT liability.
“What if I could grow my wealth in a tax-efficient manner?”
“What if I want to leave a lasting legacy for my loved ones?”
For most, retirement will be funded in the main by a pension. It is therefore vital you have a robust plan in place that will allow you to grow and protect your pension, both now and in the future.
Inheritance Tax (IHT) planning isn’t something that can be looked at once and ticked off the list. As the value of your assets change, so must your plans.
Gifting can be a great way of passing on wealth to your loved ones as well as reducing the value of your estate for Inheritance Tax (IHT) purposes and general estate planning.
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