Inheritance Tax & Estate Planning

Inheritance tax is one of those topics that feels distant until suddenly it isn’t. And by the time it becomes relevant, the options available to your family are often far more limited than they could have been with some forward planning.

We work with families across Surrey and London to help them understand their position, make the most of the allowances available to them, and pass on their wealth in a way that reflects their wishes.

What is inheritance tax and who pays it?

In the UK, inheritance tax is charged at 40% on the value of your estate above the nil rate band threshold, which currently stands at £325,000. There is also a residence nil rate band of up to £175,000 available in certain circumstances when a property is left to direct descendants.

Anything passed between spouses or civil partners is generally exempt, and unused allowances can be transferred to a surviving partner, potentially giving a combined threshold of up to £1 million.

Beyond that, the rules become more complex and the opportunities for planning become more nuanced. That is where we come in.

How much inheritance tax will my estate pay?

That depends on the size and structure of your estate, who you are leaving it to, and what planning has already been put in place. Many people are surprised to find that their estate is larger than they expected once property values are taken into account, and that a meaningful inheritance tax liability has quietly built up over the years.

We can help you understand your current position clearly, so there are no surprises for the people you leave behind.

How to avoid inheritance tax in the UK

The word “avoid” is worth handling carefully here. There is a difference between legitimate estate planning using allowances and reliefs that Parliament has specifically put in place, and aggressive tax avoidance schemes that carry significant risk. We only ever work within the former.

Some of the most commonly used and well-established approaches include making use of annual gifting allowances, placing assets into trust, ensuring life insurance policies are written in trust, making use of pension assets efficiently, and considering charitable giving as part of your estate plan.

None of these is right for everyone, and the appropriate approach always depends on your individual circumstances. That is why personalised advice matters here far more than a generic checklist.

How much can you give someone tax-free?

There are a number of gifting allowances available under current rules. Each tax year, you can give away up to £3,000 without it forming part of your estate for inheritance tax purposes. Gifts between individuals may also fall outside of your estate after seven years, provided certain conditions are met. There are also specific exemptions for wedding gifts and regular gifts made from surplus income.

These allowances can add up meaningfully over time when used consistently and documented properly.

What about HMRC inheritance tax changes in 2027?

There are significant changes to inheritance tax rules coming into effect in April 2027, particularly around pension assets and agricultural and business property reliefs. These changes may materially affect estate plans that are currently in place or being considered.

If your current plan has not been reviewed in light of these changes, now is a sensible time to do so. The earlier you act, the more flexibility you are likely to have.

Our approach to estate planning

We take the time to understand your full financial picture, your family situation, and what matters most to you before making any recommendation. Passing on wealth is not just a financial decision. For most people it is a deeply personal one, and we treat it as such.

Every recommendation we make is carefully tailored to your individual circumstances. Where appropriate, we work closely with your solicitor and accountant to ensure every element of your financial plan is fully aligned and implemented in a coordinated, seamless manner.

What to expect when you get in touch

Our first meeting is at our cost, with no obligation. It is simply a chance for us to understand your situation and for you to see how we work.

Trusts, Estate planning & Inheritance Tax planning is not regulated by the Financial Conduct Authority