Inheritance tax planning.

We want to help you make the most of your financial arrangements through tax and trust planning. Having accumulated your wealth, we know how important it is for you to preserve it.

Inheritance tax is a personal tax charged on a person’s estate at the time of their death. The rate is set at 40% on the amount of your net estate on death in excess of the nil rate band which is currently fixed at £325,000 until 2019.

However, from April 2017 the new home allowance, otherwise known as the Residential Nil Rate Band (RNRB), will help increase the threshold under which no inheritance tax is paid. This is being phased in and there are various conditions which apply.

In 2012/13, HM Revenue & Customs (HMRC) received revenue of £3.2 billion in inheritance tax. With a freeze on the nil rate band and rising house prices in London and the South East, more estates could be liable for IHT.

With the need for estate planning becoming more important there are solutions available to reduce the amount of inheritance tax (IHT) that you may pay on your wealth, including:

  • Gift Trusts
  • Business Property Relief
  • Business asset rollover relief
  • Enterprise Investment Scheme (EIS)
  • Accelerated Discounted Gift Trust

Read more on each of these options.

Taper relief can also reduce an IHT liability on a sliding scale where an individual dies between 3 and 7 years after making a potentially exempt transfer (PET).

Please note: With so many options available IHT is an area which is extremely complicated. Please contact your Dentons Wealth Planner for more information.


Some key statistics*

IHT receipts in 2013-14 were
£3.417 billion - up 8.6% since

Residential property makes up approximately 1/3 of the total value of taxpaying estates

Nil rate band has been frozen at £325,000 since April 2009

Any unused percentage of nil rate
band from a late spouse or civil
partner can be transferred for the
use of the second spouse or civil partner when they die - known as the
'transferable nil rate band'

Effective IHT threshold is the nil
rate band plus any transferable nil
rate band allowance due

Spousal relief accounted for
over 62% of all relief
against assets


*Source: HMRC IHT statistice 2011-12

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