INHERITANCE TAX PLANNING
Around £5 billion in avoidable IHT is paid annually.
%
Adults in the UK die intestate each year
%
Could be lost to IHT without proper estate planning
%
Beneficiaries miss out on tax-saving opportunities.
INHERITANCE TAX
Protecting more of your legacy…
Our IHT Specialisms
PRESERVING YOUR LEGACY, MINIMISING YOUR TAX…
Lifetime Planning Strategies
Business & Agricultural Reliefs
IHT Forms for Estates & Tax Returns at Date of Death
Tax Services for Complex Estates
Plan wisely…
At Lewis Brownlee, we recognise the importance of helping you safeguard your legacy for future generations. That’s why we design our inheritance planning services with precision—to guide you confidently through the intricacies of the UK’s inheritance tax landscape. Our Inheritance Planning Specialists bring deep expertise and insight to help you build effective strategies, ensuring your loved ones benefit fully from your life’s work.
Over the past three decades, we’ve supported clients across Chichester, Midhurst, Whiteley, and London. As a result, we understand the unique nuances of inheritance planning in the UK. We don’t just act as advisers—we work as collaborators, helping you protect what matters most. So, you can trust us to stand by your side, championing your best interests as we navigate this vital process together.
Plan wisely…
At Lewis Brownlee, we recognise the importance of helping you safeguard your legacy for future generations. That’s why we design our inheritance planning services with precision—to guide you confidently through the intricacies of the UK’s inheritance tax landscape. Our Inheritance Planning Specialists bring deep expertise and insight to help you build effective strategies, ensuring your loved ones benefit fully from your life’s work.
Over the past three decades, we’ve supported clients across Chichester, Midhurst, Whiteley, and London. As a result, we understand the unique nuances of inheritance planning in the UK. We don’t just act as advisers—we work as collaborators, helping you protect what matters most. So, you can trust us to stand by your side, championing your best interests as we navigate this vital process together.
Why Inheritance Planning Matters
– YOU CAN’T STOP TIME, BUT YOU CAN PLAN FOR WHAT HAPPENS NEXT –
Inheritance planning isn’t just about minimising tax. It’s about creating peace of mind.
When you plan ahead, you give your family clarity. You also make it easier for them to deal with financial matters at a difficult time. As a result, we ensure your intentions are honoured and your legacy protected.
In many cases, inheritance planning reduces the burden of Inheritance Tax. By identifying opportunities early, we help you make the most of your allowances and exemptions.
That’s why our approach is proactive, tailored, and focused on long-term results. It’s not just about numbers – it’s about doing right by the people you care about.
Why Inheritance Planning Matters
– YOU CAN’T STOP TIME, BUT YOU CAN PLAN FOR WHAT HAPPENS NEXT –
Inheritance planning isn’t just about minimising tax. It’s about creating peace of mind.
When you plan ahead, you give your family clarity. You also make it easier for them to deal with financial matters at a difficult time. As a result, we ensure your intentions are honoured and your legacy protected.
In many cases, inheritance planning reduces the burden of Inheritance Tax. By identifying opportunities early, we help you make the most of your allowances and exemptions.
That’s why our approach is proactive, tailored, and focused on long-term results. It’s not just about numbers – it’s about doing right by the people you care about.
Making it clear. Making it count…
– PARTNERING IN YOUR SUCCESS & ALLOWING YOU TO DREAM BIG –
At Lewis Brownlee, we are dedicated to delivering exceptional guidance in inheritance tax planning. We firmly believe that understanding such a crucial part of your financial life shouldn’t be shrouded in complexity. Hence, our philosophy centres on ‘making it clear and making it count’ when demystifying inheritance tax for you.
We invest time in delving into your distinct financial circumstances, shaping our services to align perfectly with your inheritance planning objectives. So, when you need a partner in your inheritance tax planning success,
here at Lewis Brownlee we are always ready to assist.
Ready to sort your IHT?
We’ve been helping people like you… for years!
Get in Touch
FAQs
What is Inheritance Tax (IHT)?
Inheritance Tax is a tax on the value of a person’s estate when they die, and in some cases on gifts made during their lifetime. The standard rate is 40% on the value above certain thresholds, though there are many reliefs and allowances that can reduce or eliminate the liability with the right planning.
What is the current IHT threshold?
The standard nil-rate band is £325,000 per person. This means no IHT is due on the first £325,000 of an estate. If you leave your home to direct descendants (e.g. children or grandchildren), an additional £175,000 residence nil-rate band may apply - bringing the total potential threshold to £500,000 (or £1 million for couples).
How can I reduce the amount of Inheritance Tax my family pays?
There are several strategies to reduce IHT, including:
- Making use of lifetime gift allowances
- Leaving assets to a spouse or civil partner (IHT-exempt)
- Gifting to charities
- Placing assets into trusts
- Taking out life insurance policies written in trust
- Planning your will tax-efficiently
We offer tailored IHT planning to suit your circumstances and goals.
What gifts are exempt from Inheritance Tax?
You can gift up to £3,000 per year IHT-free (the annual exemption), plus:
- Unlimited small gifts of up to £250 per person
- Wedding gifts (up to £5,000 for a child)
- Regular gifts from surplus income (if properly documented)
These gifts fall outside your estate immediately or after 7 years, depending on the type.
What is the 7-year rule for Inheritance Tax?
If you gift an asset and live for seven years, it usually falls outside your estate for IHT purposes. If you die within 7 years, the gift is still counted - but taper relief may reduce the tax owed. We can help track and document lifetime gifts to ensure compliance.
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Do I pay Inheritance Tax on my family home?
Potentially, yes - but there are important reliefs available. If you leave your main home to children or grandchildren, you may benefit from the residence nil-rate band of up to £175,000. Downsizing or selling the home doesn’t always remove this benefit if planned carefully.
Can I use trusts to reduce Inheritance Tax?
Yes, trusts can help remove assets from your estate and control how wealth is passed on. Common types include discretionary trusts, bare trusts, and interest in possession trusts. We’ll advise on the right structure and handle all compliance requirements, including reporting to HMRC.
What happens if I inherit money - do I pay tax on it?
Generally, no. Inheritance Tax is paid by the estate of the deceased before assets are distributed. However, if you later invest or gift that money, other taxes (such as Income Tax, Capital Gains Tax, or IHT on your own estate) may come into play.
Can business or agricultural assets be exempt from IHT?
Yes. Business Relief and Agricultural Relief can reduce the value of certain business or farming assets for IHT purposes. From April 2026, the £1 million cap on IHT relief for agricultural and business assets will apply per individual. The £1 million relief is not transferable between spouses. This means that a surviving spouse cannot inherit the unused portion of the cap from their deceased partner. If the relevant assets are worth more than £1 million, then a rate of 50% APR or BPR would apply and the remaining value left after reliefs and nil rate bands will be taxable at 40%.
When should I start inheritance tax planning?
Ideally, as early as possible - especially if your estate is likely to exceed the nil-rate bands. Early planning allows you to:
- Make lifetime gifts strategically
- Set up tax-efficient wills and trusts
- Avoid last-minute decisions that lead to unnecessary tax
We offer long-term, compassionate support to ensure your wealth goes where you intend it to.
Changes to Inheritance Tax
From 6 April 2025, a residence-based IHT system will apply. Individuals who have been UK resident for at least 10 of the past 20 tax years will be classified as Long-Term Residents. Long-Term Residents will be subject to IHT on their worldwide assets, similar to UK-domiciled individuals. A “tail provision” means this IHT liability continues for up to 10 years after an individual leaves the UK, depending on their period of UK residence.
Does a Personal Tax Return Need to be Completed in the Year of Death?
Potentially, if the individual had to complete personal tax returns before they died, then yes a tax return will more than likely be needed up to their date of death. This will be on a case by case basis so will need to be checked.