Inheritance Tax Services to Secure Your Legacy
Our inheritance tax services help you reduce tax, protect assets, and plan your estate clearly.
Inheritance tax can be complex. Our inheritance tax specialists provide straightforward advice and practical solutions. We create plans that fit your situation and ensure your wealth passes on as you intend. Our expert inheritance tax accountants and advisers offer straightforward advice and personalised solutions.
There is ongoing speculation about inheritance tax reforms in future Budgets. While nothing is confirmed, reviewing your position now helps you stay prepared if rules change.
Why Choose David Howard for Your Inheritance Tax Planning:
What Is Inheritance Tax and When Does It Apply
Inheritance tax (IHT) is a tax on property, money, and possessions left when someone dies. Estates under £325,000 are not taxed. Above that, the estate pays 40% on the excess.
2025 Threshold Updates
- The standard nil-rate band remains £325,000.
- Residence nil-rate band rises from £175,000 to £250,000 for main homes passed to direct descendants.
Experience that Spans Decades
Our clients share why they continue to trust us with their business
Joe Wood
Director, Knowledge Garden Limited
I selected David Howard to act as my accountants for my start up business based on their web site and their prompt response to my inquiry. During the first meeting the knowledge, the technology and professionalism of the partner confirmed my opinion that they would be the right accountants for me.
Helen Francis
Director, World’s End Interiors Limited
David Howard were recommended to us by our financial adviser after we had a difficult time with our previous accountants. From the outset, we were impressed by their professionalism, efficiency and breadth of knowledge. We get on with our business, knowing that our accounts and book-keeping are in very safe hands with the team at David Howard.
Trish Carver
Director, Sims4Training Limited
We have recently moved to David Howard, about a year ago. Quite frankly, I wish I’d made the move years ago. They are helpful, friendly and jargon free. it’s made a world of difference to our ability to forecast and I feel we have much better control of the business. I am happy to recommend them.
How David Howard Can Help You Minimise IHT
We offer inheritance tax services tailored to your situation. Our IHT and probate specialists provide proven strategies suited to your situation. Key methods to lower your IHT liability include:
Lifetime Gifting and Exemptions
We guide you through the inheritance tax gifting rules UK. Gifts comply with the 7-year rule and exemptions.
Trusts and Family Investment Companies
Our inheritance tax specialists set up trusts and manage Family Investment Companies. This optimises reliefs and protects your assets.
Property and Main-Residence Planning
We advise on maximising your residence nil-rate band. We help structure property to reduce IHT.
Business and Agricultural Reliefs
We identify opportunities for business inheritance tax reliefs. We ensure assets qualify for maximum relief.
Life Assurance
We recommend life assurance policies that cover expected tax liabilities.
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Frequently Asked Questions About Inheritance Tax
When do you have to pay inheritance tax?
The estate must pay within six months of death. Late payment may lead to interest or penalties.
How much is inheritance tax?
Inheritance tax is 40% on the value above the threshold.
How does the 7-year rule work?
Gifts older than seven years are usually exempt. Gifts within seven years may face taper relief.
What counts towards your estate?
Property, cash, investments, gifts within seven years, and certain trusts.
Can I reduce tax with gifts?
Yes. Use inheritance tax gifting rules UK, including exemptions and annual allowances.
What other taxes could heirs face?
Capital gains tax on inherited assets and income tax on some inherited income.
How does the residence nil-rate band work?
It adds an allowance for passing your main home to children or grandchildren, up to £250,000 from 2025.
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Who Pays Inheritance Tax
The estate pays IHT before distribution. Gifts made within seven years of death may also be taxed (7-year rule).
Why Pay Inheritance Tax
IHT is a government tax on estates above set limits. Planning can reduce the amount heirs must pay.
Key terms:
- Inheritance tax threshold: Limit below which no IHT is due.
- Inheritance tax allowance: Tax-free portion of your estate.
- Residence nil-rate band: Extra allowance for passing a home to children or grandchildren.
- When do you have to pay inheritance tax? Usually within six months of death.
Good planning can cut or remove your IHT liability.
Why Professional Inheritance Tax Planning Matters
Without planning, inheritance tax can take a large portion of your estate. It can also slow down transfers and create legal issues.
Professional planning gives clear benefits:
- Protect your estate: Use reliefs and exemptions to reduce tax.
- Avoid probate delays: A clear plan reduces legal hurdles.
- Act early: Early planning increases options for gifts and exemptions.
- Reduce stress for heirs: Well-structured estates are easier to manage.
Inheritance tax advice ensures your plan follows the law. It maximises reliefs and suits your situation. Waiting reduces options and may cost your family more
Why Choose Us as Your Inheritance Tax Specialists
Our inheritance tax specialists provide clear, practical advice. We combine local expertise with national reach.
- Experience and accreditation: Decades of combined experience. Fully qualified professionals.
- Transparent fees: No hidden costs. Plans tailored to your estate.
- Practical solutions: Strategies designed to fit your family and assets.
- Access to experts: Contact us directly for guidance from senior advisors.
Contact us today for a free consultation with a qualified inheritance tax specialist
Inheritance Tax Gifts, Reliefs, and Exemptions
You can reduce inheritance tax through gifts, reliefs, and exemptions.
Lifetime Gifts
Gifting assets during your life lowers the estate’s taxable value.
- Annual exemptions: Each year, you can give up to £3,000 tax-free.
- Small gifts: You can give up to £250 per person per year without tax.
- Gifts over seven years old: Usually exempt under the 7-year rule.
Reliefs
Reliefs reduce the value of your estate subject to IHT:
- Business relief: Reduces IHT on qualifying business assets, up to 100%.
- Agricultural relief: Applies to farmland and property used for farming.
- Residence nil-rate band: Extra allowance for passing a home to direct descendants.
Trusts
Placing assets in trusts can protect wealth and control inheritance. Trusts can delay or reduce tax liability while ensuring assets are distributed according to your wishes.
Applying gifts, exemptions, and reliefs together requires planning. A specialist can help structure them correctly.
Using Life Insurance to Pay Inheritance Tax
Life insurance can cover inheritance tax liabilities. It ensures heirs have cash to pay IHT without selling property or other assets.
- Term insurance: Covers IHT for a set period. Useful for estates where IHT may arise soon.
- Whole-of-life insurance: Provides a payout on death, covering IHT regardless of timing.
- Trusts for life insurance: Placing the policy in a trust can prevent it being added to the estate.
Using insurance allows your family to receive the estate intact. It avoids forced sales of property or investments.
What Other Taxes Do My Heirs Have to Pay on Inheritance?
Inheritance tax is not the only tax heirs might face.
- Capital Gains Tax (CGT): If an heir later sells inherited assets, they may pay CGT on the increase in value from the date of inheritance.
- Income Tax: Some inherited income, such as dividends or rental income, may be taxable.
- Stamp Duty Land Tax: If a property is transferred or sold, SDLT may apply.
Understanding all potential taxes helps heirs plan effectively. Professional advice ensures they are prepared and can minimise future liabilities.
Why Does IHT Planning Matter?
Inheritance tax planning matters because it helps protect your estate and your heirs. Without planning, your family may face a large tax bill. Poor planning can also slow estate settlement and cause disputes.
Effective planning allows you to:
- Preserve wealth: Reduce the tax your estate owes.
- Avoid delays: Structured planning makes probate smoother.
- Control distribution: Ensure assets go to intended heirs.
- Use exemptions and reliefs: Maximise lifetime gifts and other allowances.
Even if your estate is below the threshold, planning is useful. Rules change and life circumstances evolve. A clear plan ensures you and your family understand your options.
How Our Inheritance Tax Services Work
We follow a clear, structured approach:
Initial consultation: We review your estate and goals.
Comprehensive assessment: We check assets, liabilities, and IHT exposure.
Collaborative planning: We work with your legal and financial advisors.
Personalised strategy: We design a plan for your circumstances.
Implementation support: We assist with documentation and trusts.
Regular reviews: We update your plan for changes in law or life events.
Searching for an “inheritance tax specialist near me”? We provide expert advice nationwide with local knowledge.
Why Choose Us as Your Inheritance Tax Specialists
Our inheritance tax specialists provide clear, practical advice. We combine local expertise with national reach.
- Experience and accreditation: Decades of combined experience. Fully qualified professionals.
- Transparent fees: No hidden costs. Plans tailored to your estate.
- Practical solutions: Strategies designed to fit your family and assets.
- Access to experts: Contact us directly for guidance from senior advisors.
Contact us today for a free consultation with a qualified inheritance tax specialist.
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