Inheritance Tax planning
Plan what you want to pass on — and understand the rules before acting.
Inheritance Tax planning starts with understanding your estate, your family priorities and the reliefs or exemptions that may apply. The aim is not simply to reduce tax, but to make sure any planning remains affordable, appropriate and properly structured.
Current UK position
Key Inheritance Tax figures as at 15 September 2026.
Start with your circumstances
Good planning should not leave you financially exposed.
Before considering gifts, trusts or other planning, it is important to understand what you may need for your own spending, later-life costs, emergencies and future flexibility.
We can help bring together your assets, pensions, investments and wider financial plan so that estate-planning decisions are made in context rather than in isolation.
Lifetime giving
Gifts can help, but the detail matters.
Annual and other exemptions
Some lifetime gifts can be exempt immediately. The annual exemption is £3,000 and, if unused, can generally be carried forward for one tax year. Other exemptions can apply in specific circumstances.
The seven-year rule
Many outright gifts to individuals are potentially exempt transfers. If you survive seven years after making the gift, no Inheritance Tax is normally due on that gift. Different rules can apply to trusts and other transfers.
Do not give away something you still use
If you give an asset away but continue to benefit from it, the gift-with-reservation rules can mean it remains part of your estate for Inheritance Tax purposes.
Business & agricultural assets
Relief rules changed from 6 April 2026.
Qualifying business and agricultural property now operate under revised rules. Planning based on the old unlimited 100% relief position may therefore be out of date.
A £2.5 million allowance applies to the combined value of property qualifying for 100% Business Relief or Agricultural Relief. Qualifying value above that allowance is generally relieved at 50%. Unused allowance can be transferable between spouses and civil partners, subject to the rules.
Our planning process
Understand the estate before choosing the planning tool.
Map the estate
Bring together property, savings, investments, pensions, business interests and relevant liabilities.
Estimate the position
Consider available thresholds, exemptions, reliefs and where a potential tax liability may arise.
Protect your own needs
Test affordability and make sure proposed planning does not undermine your own future security or flexibility.
Coordinate the solution
Implement appropriate financial planning and, where needed, work alongside solicitors and specialist tax advisers.
Frequently asked questions
Your questions, answered.
What is the current Inheritance Tax threshold?
The standard nil-rate band is £325,000. A residence nil-rate band of up to £175,000 may also be available when qualifying conditions are met.
Can married couples or civil partners combine allowances?
Unused nil-rate band and, where eligible, residence nil-rate band can potentially be transferred to a surviving spouse or civil partner, so the available thresholds depend on the family's circumstances.
Does every gift have a seven-year clock?
No. Some gifts are immediately exempt, while other gifts can be potentially exempt transfers or chargeable lifetime transfers. Trusts and gifts with reservation can follow different rules.
What is taper relief?
Taper relief can reduce the tax charged on certain gifts where the donor dies between three and seven years after the gift. It reduces tax on the gift, not the value of the gift itself.
Can I give my home away and continue living there?
Giving away a home while continuing to live there without paying a full market rent can trigger the gift-with-reservation rules, meaning the home may still be treated as part of the estate.
Do I need a solicitor or tax adviser?
Often, yes. Financial planning can help assess affordability, investments and the wider estate, while wills, trusts, legal ownership and complex tax matters may require a solicitor or specialist tax adviser.
Important: Tax treatment depends on individual circumstances and can change. This page is general information and is not personal tax or legal advice. Before making gifts, using trusts or changing ownership, obtain appropriate advice for your circumstances.
Plan with clarity
Understand the estate before making irreversible decisions.
We can help you see the wider financial picture and identify where specialist legal or tax advice should form part of the plan.