Inheritance Tax (IHT)
The government levies tax on the value of a person’s estate, if their estate is worth more than the Nil Rate Band. The IHT ‘Nil Rate Band’ (NRB) is currently £325,000 (2026/2027) and many people are still getting caught in the trap of property inheritance tax as the threshold has not kept pace with the inflation of property prices, and so is affecting more and more people.
There is also an additional ‘main residence’ allowance Residence Nil Rate Band (RNRB) which applies if a person’s home is given to their children (including adopted, foster or stepchildren) or grandchildren. This is set at £175,000 (2026/2027) and is added to the IHT threshold providing a total allowance of £500,000 (2026/2027).
When a relative dies and leaves an estate worth more than £325,000 (2026/2027) or £500,000 (2026/2027) if the ‘main residence’ allowance applies, families are required to pay tax on the amount in excess of the NRB (and RNRB if applicable) by the end of the sixth month after the month of death. After that, they are charged interest at a rate of 7.75% (2026/2027).
However, there are ways to lessen the burden of property IHT.
When you die, it is likely that you would wish to leave as much as possible for your loved ones. Unfortunately, this is often not as simple as you might expect. HM Revenue and Customs (HMRC) will apply 40% tax to the value of your estate over and above that of the NRB (and RNRB) that applies at the time of death.
There is generally no IHT payable on ‘inter-spousal transfers’ (money/property/assets that is bequeathed by one spouse or civil partner) to the other.
Your estate could include more than you originally realise. It is often easy to dismiss IHT as something that may not affect you as your property may not be over, or much over, the IHT threshold. However, with all your other assets, such as investments, life cover, bank accounts, as well as physical property such as cars, furniture and family heirlooms, many estates are considerably over the threshold without the individuals being aware of it.
For assets passed between spouses and civil partners, the nil rate band allowance will pass along with the assets. This gives a couple available allowances (nil rate bands) of up to £650,000 (2026/2027), which increases to £1,000,000 (2026/2027) with the addition of the ‘main residence’ allowance detailed above.
It is important to note that tax treatment depends on individual circumstances and may be subject to change in the future.
For further information about Inheritance Tax please click here.
Tax planning, including inheritance tax planning and estate planning, is not regulated by the Financial Conduct Authority.
MEET OUR Director/Wealth Manager
Aman Mashiana
Aman Mashiana is a strategic wealth management professional with more than 15 years’ experience building and leading advisory practices, managing substantial client portfolios, and delivering sustainable revenue growth in competitive financial markets.
The best solutions often start with the right questions!
FAQ'S
Not at all. We believe great financial planning should be accessible. Whether you are just starting to build your assets, navigating a major life transition, or managing multi-generational wealth, we tailor our advice completely to your current situation and future goals.
Our initial conversation is entirely exploratory and comes at no cost to you. It’s simply a chance to get to know each other. We’ll discuss your current financial picture, what you hope to achieve, and how we might be able to help. You won't need to sign anything or make any big decisions on day one.
We want to make managing your wealth as convenient as possible. We are happy to meet face-to-face at our office, or we can host a secure virtual meeting via video call (such as Microsoft Teams or Zoom) if that fits better into your busy schedule.
We believe in absolute fee transparency, meaning we agree on all costs upfront before any work begins. Depending on the complexity of your needs, our fees may be structured as a transparent percentage of the assets we manage, a flat fixed fee for a specific project, or an hourly rate. There are never any hidden costs or surprise bills.
Absolutely. It's incredibly common to lose track of old workplace pensions over time. We can help you trace your scattered accounts, review their current performance and fees, and—if it makes financial sense—consolidate them into a single, high-performing, and easy-to-manage retirement plan.
We don't believe in cookie-cutter portfolios. We take the time to deeply understand your time horizon, your specific life goals, and your personal comfort level with market volatility. From there, we build a diversified portfolio designed to grow your wealth steadily while keeping your risk well within your comfort zone.
Yes. Making money on investments is only half the battle; keeping it tax-efficient is just as important. We actively structure your wealth to minimize Income Tax, Capital Gains Tax, and Inheritance Tax, ensuring more of your hard-earned money stays with you and your loved ones.
Tax planning, estate planning & Inheritance Tax planning are not regulated by the Financial Conduct Authority.
Not at all. We believe great financial planning should be accessible. Whether you are just starting to build your assets, navigating a major life transition, or managing multi-generational wealth, we tailor our advice completely to your current situation and future goals.
Our initial conversation is entirely exploratory and comes at no cost to you. It’s simply a chance to get to know each other. We’ll discuss your current financial picture, what you hope to achieve, and how we might be able to help. You won't need to sign anything or make any big decisions on day one.
We want to make managing your wealth as convenient as possible. We are happy to meet face-to-face at our office, or we can host a secure virtual meeting via video call (such as Microsoft Teams or Zoom) if that fits better into your busy schedule.
We believe in absolute fee transparency, meaning we agree on all costs upfront before any work begins. Depending on the complexity of your needs, our fees may be structured as a transparent percentage of the assets we manage, a flat fixed fee for a specific project, or an hourly rate. There are never any hidden costs or surprise bills.
Absolutely. It's incredibly common to lose track of old workplace pensions over time. We can help you trace your scattered accounts, review their current performance and fees, and—if it makes financial sense—consolidate them into a single, high-performing, and easy-to-manage retirement plan.
We don't believe in cookie-cutter portfolios. We take the time to deeply understand your time horizon, your specific life goals, and your personal comfort level with market volatility. From there, we build a diversified portfolio designed to grow your wealth steadily while keeping your risk well within your comfort zone.
Yes. Making money on investments is only half the battle; keeping it tax-efficient is just as important. We actively structure your wealth to minimize Income Tax, Capital Gains Tax, and Inheritance Tax, ensuring more of your hard-earned money stays with you and your loved ones.
Tax planning, estate planning & Inheritance Tax planning are not regulated by the Financial Conduct Authority.
