A variety of wealth management strategies can be utilised to reduce your family’s inheritance tax liability.
What is inheritance tax?
Inheritance tax is tax paid to HMRC on the value of the estate of a deceased person, as per the deceased’s will or common law. Spouses and civil partners do not pay inheritance tax when receiving an inheritance from their husband/wife/partner, and you may not have to pay anything if you inherit within the “nil-rate band”.
Inheritance tax rate
The nil-rate band for inheritance tax – i.e., the amount of money you can inherit before having to pay any inheritance tax – is currently set at £325,000*, all inherited monies above this figure will be charged 40% tax.
However, this nil-rate band can be topped up by £175,000* to £500,000* if the deceased leaves their main residence to their children and/or grandchildren, officially known as the “main residence allowance”. If the estate is worth more than a total of £2 million, other rules apply.
Reducing your inheritance tax through donations
Charitable donating is one strategy for reducing the inheritance tax bill your family will need to pay from your estate. By leaving a donation to charity in your will, you can reduce your tax bill in one of two ways:
- Charitable donations are deducted from the estate’s net value, meaning the amount subject to inheritance tax is reduced by the amount donated.
- If the charitable donation equals or exceeds 10% of the estate’s value, a lower inheritance tax rate will be applied on the amount above the nil-rate band.
Current laws encourage at least 10% of the estate’s value is donated to charity in return for partial tax relief. The amount owed to HMRC will be reduced by 10%, i.e., from an inheritance tax rate of 40% to 36%.
Other ways to reduce inheritance tax
There are other wealth planning strategies to reduce the inheritance tax your family will owe, such as making the most of gift allowances, investments, insurance and more.
*Tax year 2026/2027
INHERITANCE TAX 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.
