Inheritance Tax Planning

At GHLD, we help individuals and families across the UK take control of inheritance tax. Inheritance tax planning includes considering worldwide assets for UK domiciled individuals. With clear advice and smart planning, we’ll help you pass on more of your wealth – without unnecessary stress or surprise tax bills.

Inheritance tax (IHT) is charged on estates worth more than £325,000, with a standard rate of 40% applied to anything above that threshold. There are ways to reduce or even avoid this charge legally – but timing and planning are everything.

Unused portions of annual exemptions can be carried forward to the next tax year, providing greater flexibility in tax planning. Additionally, tax exemptions between spouses can significantly reduce the IHT burden, as transferring unused nil rate bands between spouses can maximise tax reliefs.

Whether you’re thinking about the future, supporting ageing parents, or managing a family estate, it pays to get expert advice early. That’s where we come in.

Why inheritance tax liability planning matters

Without proper planning, a large part of your estate could go to HMRC rather than your loved ones. We’ll help you make the most of available allowances, structure your assets sensibly, and consider gifting, trusts, and reliefs that suit your circumstances. A surviving spouse can utilise their own nil rate band and any unused portion of the deceased spouse’s nil rate band, potentially doubling the available tax-free allowance on the second death.

Every estate is different. We take the time to understand your goals and family situation, then offer personalised advice that balances your needs now with your wishes for the future. Gifts made to individuals or charities can have significant implications for inheritance tax, and understanding these can help in effective estate planning.

Taper relief applies to gifts made within three to seven years before death, reducing the tax liability depending on how long the donor survives after making the gift. The total value of your estate is crucial in determining tax liability, especially when assessing reliefs and calculating whether the estate exceeds established thresholds that trigger tax obligations.

How GHLD can help

We make inheritance tax planning feel more manageable – and far less daunting. Our service includes:

• Estate reviews to assess potential liabilities and navigate taxation to minimise financial burdens

• Advice on wills, trusts and gifting strategies, emphasising the importance of savings in inheritance tax planning

• Planning for business and property reliefs, including understanding the impact of business assets on tax exemptions

• Working with your solicitor to align your tax and legal arrangements

• Ongoing reviews to adapt to changes in tax law or your personal situation

We also work closely with families and executors after a death, offering calm, practical support to manage estate administration and any inheritance tax liabilities that arise. Life assurance policies can help protect against the IHT bill by being written into trust, thus preventing them from forming a part of the estate.

Experienced, proactive and easy to work with

GHLD has supported clients across generations – from entrepreneurs to retirees – with careful, practical inheritance tax planning. We know how sensitive this subject can be, and we handle every conversation with respect and care. Understanding the rules governing inheritance tax is crucial to effective planning.

As chartered accountants, we’re up to date on the latest legislation and HMRC guidance, including the significance of the value of your estate in tax planning. As trusted advisers, we’ll always give you a straight answer and clear next steps. Life insurance policies can provide financial security and cover potential inheritance tax liabilities, ensuring that your beneficiaries receive assets without being subjected to tax implications at the time of death.

Inheritance Tax planning with confidence

Inheritance tax planning isn’t just about tax – it’s about peace of mind. It’s about knowing your family will be taken care of and your wishes respected. For married couples, there are significant tax advantages, such as exemptions from inheritance tax when assets are passed between spouses and the potential to double the nil-rate band. Additionally, understanding the implications of lifetime gifts on inheritance tax planning is crucial. Gifts made in the past seven years can affect estate valuation and tax liabilities.

Let’s start with a conversation. Whether you have a clear plan in mind or don’t know where to begin, we’re here to help.

Contact us today for support with Inheritance Tax planning.