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Expert Inheritance Tax (IHT) Advice UK Wide
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INHERITANCE TAX EXPLAINED

What Is Inheritance Tax (IHT) – And How Can You Reduce It?

A clear, simple explanation of how inheritance tax works in the UK  and what you can do to reduce it.
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Our IHT consultations are free and without obligation. If you decide to proceed with our advisers recommendations, a fee may apply.
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INHERITANCE TAX EXPLAINED

What Is Inheritance Tax (IHT)?

Inheritance tax is a tax charged on the estate (property, money, and possessions) of someone who has died.
The standard rate is 40% on anything above the tax-free threshold:
The nil-rate band is £325,000 per person
The residence nil-rate band adds an extra £175,000 when leaving your main home to direct descendants
Anything above these thresholds may be taxed at 40%
Spouses and civil partners can combine their allowances, potentially shielding up to £1 million of an estate from IHT.
INHERITANCE TAX EXPLAINED

What Counts Towards My Estate?

Your estate includes:
Property and land
Bank accounts and cash
Investments (e.g. ISAs, shares)
Pensions (from 2027 most unused pensions are included)
Business assets (if not exempt)
Life insurance (unless written in trust)
Not Sure If You’re at Risk of Inheritance Tax? Use our free calculator to check your potential inheritance tax liability in under 2 minutes.
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INHERITANCE TAX EXPLAINED

Who Pays Inheritance Tax?

Inheritance tax is usually paid by the executor or personal representative using funds from the estate. The tax must typically be paid within 6 months of the date of death.

Beneficiaries may also face tax depending on how the estate is distributed and if pension income is later drawn.
INHERITANCE TAX EXPLAINED

How Can I Reduce Inheritance Tax?

You may be able to reduce or avoid IHT by:
Making gifts during your lifetime
Using trusts to manage wealth transfer
Drawing from pensions strategically
Taking out life insurance in trust
Making use of full spouse and property allowances
These methods are legal, regulated, and often highly effective — but they need to be tailored to your personal situation.
INHERITANCE TAX EXPLAINED

Start Inheritance Tax Planning Now 

Waiting until the last minute could mean fewer options and higher costs for your family. Speak to one of our qualified advisers today and start building an inheritance tax plan that protects your legacy.

Our IHT consultations are free and without obligation. If you decide to proceed with our advice, a fee may apply but we’ll always be transparent and discuss any costs with you upfront.
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Inheritance Tax Planning, Estate Planning and Trusts are not regulated by the Financial Conduct Authority.

Tax treatment varies according to individual circumstances and is subject to change.

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Our review includes a full assessment of your estate and pensions, along with expert guidance on how to mitigate your inheritance tax liability.
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Inheritance Tax on Pensions is a trading style of Beals Mortgage and Financial Services Ltd an appointed representative of Quilter Financial Services Limited which are authorised and regulated by the Financial Conduct Authority.

The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

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