When should I begin inheritance tax planning?

As early as possible. Many inheritance tax strategies depend on time, so starting early generally provides better results.

Do I need a will as part of IHT planning?

Yes. A valid, up-to-date will ensures your estate is distributed efficiently and tax-effectively as part of your inheritance tax planning.

Can I reduce inheritance tax without giving up control?

In many cases, yes. Some strategies allow you to retain control or access to assets while still improving tax efficiency.

How often should I review my inheritance tax plan?

Every 2–3 years, or sooner if your circumstances or tax rules change, so your plan remains effective and up-to-date.

Inheritance Tax Planning London | IHT Planning Services Experts

Why Plan for Inheritance Tax?

Inheritance tax is generally charged at 40% on the value of your estate above the available allowances. Without proper planning, a large portion of your estate could be lost to tax. Inheritance tax liability is calculated based on the value of your current assets and worldwide estate.

We help clients across London, including individuals, couples, families, and business owners, reduce their exposure to IHT using legal, HMRC-compliant strategies tailored to their individual circumstances.

Key benefits of IHT planning include:

Protecting your estate for your loved ones
Reducing or eliminating inheritance tax
Ensuring your wishes are carried out efficiently
Avoiding delays and disputes during estate administration

Our inheritance tax planning services are designed to address a wide range of needs and situations.

Typical issues we help with:

High-value London property
Blended families and complex estate structures
Business ownership
Gifting to children or grandchildren
Rising estate values and investment portfolios

Our Inheritance Tax Planning Process

1. Discovery Meeting: We begin by understanding your assets, liabilities, family situation, and long-term objectives.

2. Inheritance Tax Analysis: We calculate your likely inheritance tax exposure under current rules and model alternative planning scenarios.

3. Tailored Planning Report: You receive a customised strategy explaining the options available to reduce tax and protect your estate.

4. Implementation: We help you put your plan into action, working closely with solicitors, accountants, and financial advisers as required.

5. Regular Reviews: We monitor changes in legislation, asset values, and your personal circumstances to keep your plan up-to-date.

Popular Inheritance Tax Planning Strategies

Using Allowances and Exemptions

Ensuring full use of the nil rate band, residence nil rate band, and additional nil rate band, as well as gift exemptions, is crucial for effective inheritance tax planning. These allowances can be transferred between spouses or civil partners, potentially doubling the tax-free thresholds available to your estate.

Being married or in a civil partnership can significantly increase your tax-free thresholds, as assets passed to a spouse or civil partner are generally exempt from inheritance tax, and any unused allowances can be transferred to them.

Lifetime Gifting

Structuring lifetime gifts to children or grandchildren, including potentially exempt transfers and regular gifts out of income, is a key strategy for reducing inheritance tax. Making lifetime gifts of money can help reduce the value of your taxable estate.

Additionally, small gifts of money up to £250 per person per year are exempt from inheritance tax and do not affect your annual exemption, making them a strategic way to transfer wealth without incurring tax liabilities.

Trusts and Family Wealth Structures

Trusts can help protect assets while managing your IHT exposure and providing flexibility. A discretionary trust allows trustees to decide how and when to distribute assets to beneficiaries, which can be a tax efficient way to maximize the amount passed on to beneficiaries.

Business Relief

Planning for shares or business interests that may qualify for 50–100% IHT relief, business property relief (BPR) may apply, offering up to 100% relief from inheritance tax on qualifying business assets.

Life Insurance for IHT

Life policies placed in trust can provide funds to pay IHT without selling assets.

Updating Your Will

A well-structured will is a vital part of inheritance tax planning, as wills ensure your assets are distributed according to your wishes and provide legal protection for your estate during probate.

Appointing an attorney through a lasting power of attorney ensures your affairs are managed if you lose capacity, giving you peace of mind that your financial and legal matters will be handled according to your instructions.

Why Choose a London-Based IHT Specialist?

London families often have unique estate complexities. Our team of inheritance tax planning specialists, and inheritance tax accountants provide professional advice tailored to your needs. Working collaboratively, our team delivers comprehensive solutions, ensuring you receive expert guidance at every step. Working with a local specialist provides:

Expertise in high value London property
Understanding of multicultural families and international assets
Access to trusted legal and financial professionals
Flexible meeting options in person in London or online

If you die without a will, UK intestacy rules decide who receives your assets. These rules may not reflect your wishes and can lead to unnecessary tax, delays, and disputes within the family. A professionally written will is one of the simplest and most powerful estate-planning tools available.