Inheritance Tax Planning

In the current 2024/25 tax year, inheritance tax (IHT) is applied to estates worth more than £325,000. This threshold is called the ‘nil-rate band’, and everything over it is taxed at 40%, meaning IHT can have a big impact on the wealth you pass down to your loved ones when you die.  

There are lots of ways to manage and mitigate IHT, but the rules, exceptions and reliefs can get complicated. We’ll help you understand inheritance tax, talk you through the best options for your personal circumstances, keep you compliant and organise your estate optimally.  

HOW TO MINIMISE INHERITANCE TAX 

If you’re leaving your estate to a ‘direct descendant’, including a child, grandchild, great-grandchild etc., an additional ‘residence nil-rate band’ could be added. This is a tax-free allowance, currently set at £175,000 until 2028, that is added to your nil-rate band of £325,000, meaning your estate could be worth £500,000 before IHT is due.  

Are you leaving your estate to your surviving husband or wife? It could qualify for 100% spouse exemption, while your unused residence nil-rate band allowance is preserved and transferred to your spouse.  

Gifting and/or placing your assets into a family investment company (FIC) or trust are other effective strategies to protect your wealth from a large inheritance tax bill. As part of the wider Cooper Parry group, we have access to a talented group of tax specialists who focus on this area. 

So, if you’re looking to minimise your inheritance tax bill, protect your assets and get peace of mind that your wealth is going to your beneficiaries, and not HMRC, we should talk.