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Inheritance Tax

What is Inheritance Tax?

Inheritance Tax is a comprehensive and often misunderstood area of financial planning. It is a levy imposed on the estate of a deceased individual, encompassing their property, possessions and finances. The standard rate for Inheritance Tax is 40%, applicable to the portion of your estate exceeding the tax-free threshold, which currently stands at £325,000

Why Do I Need Inheritance Tax Advice?

Inheritance Tax can be complex and seeking professional advice is crucial to understand your potential liabilities and preserve your wealth for your loved ones. Without proper planning, a significant portion of your estate may end up being paid to HMRC instead of benefiting your family. It is essential to explore strategies to mitigate Inheritance Tax, protect your assets and ensure your family’s financial security.

What Exchange Accountants Can Do for You

Inheritance Tax can significantly reduce the wealth you pass on to your loved ones. Our experts will explore various strategies, such as lifetime gifting, trusts and reliefs, to help you mitigate Inheritance Tax liabilities and protect your wealth.

Exchange Accountants offers comprehensive Inheritance Tax advisory services to help you navigate the complexities of the tax system and maximise the benefits for your loved ones. Our experienced team of specialists will work closely with you to develop tailored strategies that minimise Inheritance Tax liabilities and secure your family’s financial future.

Our inheritance tax specialists possess extensive expertise and in-depth knowledge of the complex tax regulations surrounding inheritance. We stay up to date with the latest legislation to provide accurate and relevant advice. We understand that each family’s circumstances are unique. Our personalised approach ensures that we develop customised inheritance tax plans aligned with your specific needs and long-term objectives.


Inheritance Tax (IHT) is due when a person’s estate (their property and possessions) is worth more than £325,000 when they die. This is called the ‘IHT threshold’.

The current rate of IHT is 40% on anything above the threshold. The rate may be reduced to 36% if more than 10% of the estate is left to charity.

Who pays Inheritance Tax

Usually the executor or personal representative for the person who has died pays IHT using the funds from the estate.

Trustees are responsible for paying IHT on trusts, which are a way of looking after assets (money, investments, land or buildings) for people. A trustee is a person who looks after the trust.

If you’ve got an inheritance or a gift from someone who has died you only owe IHT if their estate is more than £325,000 and either:

There are certain reliefs from IHT. These include estates that include certain business assets or agricultural property.


It is also possible to reduce any IHT due on death by reorganising your estate while you are alive. This can be done with the use of trusts or by gifting assets. As you can imagine there are complicated rules that set out how these strategies can be used. Additionally, any assets left to your spouse or civil partner (providing they are UK domiciled) are exempt from IHT.