Who our Inheritance Tax planning helps
Effective Inheritance Tax planning is not about finding clever tricks that could backfire further down the line. It’s about making sure your affairs are organised, your allowances are used, and as much of your wealth as possible passes to the people and causes you care about.
In short, it’s about making sure your estate isn’t hit with avoidable levels of tax.
At THP, we work with:
- Homeowners with valuable property
- Higher-rate taxpayers who are building significant investments and pensions
- Business owners concerned about passing on a trading company
- People who want to help children and grandchildren while they can
If any of these sound like you, the best time to start planning is now. This is because many of the best IHT planning strategies depend on time, records and consistency – not last-minute paperwork.
What is Inheritance Tax planning?
Inheritance Tax (IHT) is a tax that is applied to the value of your estate after you die. Your estate includes the property, money, investments and possessions you have (after debts have been paid off).
Without planning, the value above the available thresholds is normally taxed at 40%. In some cases, families can lose tens or even hundreds of thousands of pounds because they failed to plan for IHT.
At THP, our IHT planners look at the full picture and show you how to use the reliefs, exemptions and structures available to you to reduce the tax your estate may pay. We can also ensure your wishes are clear, your documents are up to date, and your family has a plan to follow.
Book a no obligation call with Ian, our IHT expert
Current IHT thresholds
Not everyone pays Inheritance Tax. Whether you do or not depends on your total wealth, how it is owned, and who inherits it.
The main tax-free allowances
- Nil Rate Band (NRB): £325,000
- Residence Nil Rate Band (RNRB): up to £175,000 (if you leave a qualifying home to direct descendants)
What couples can pass on
With the right Wills and structure, a married couple or civil partners can potentially pass on up to £1 million tax-free (NRB + RNRB, with unused allowances often transferable). However, the RNRB can taper off when the net value of an estate exceeds £2 million and can be lost entirely on estates valued between £2.35 million and £2.7 million, depending on available allowances.
A common “trap”
Rising property prices can easily push an estate over the £2 million taper threshold mentioned above. This puts you in a “trap” where you lose the extra Residence Nil Rate Band allowance, significantly increasing your potential tax bill.
If you are unsure whether you are likely to pay Inheritance Tax, our experts can help advise you.
How we reduce your IHT bill
There is no single “best” tactic to legitimately keep your IHT bill low. That’s because good IHT planning takes into account a variety of factors that will depend on your circumstances.
Some gifts are exempt straight away if you follow the rules. These include the annual gifting exemption, small gifts, wedding/civil partnership gifts, and – importantly – regular gifts made from surplus income (for example from salary, dividends or pension income), provided they are part of your normal spending pattern and do not reduce your standard of living. Good record-keeping matters here, because your executors may need to evidence the pattern and affordability to HMRC.
Bigger one-off gifts – for example, giving a lump sum from savings, gifting investments, or transferring an asset – are often treated as Potentially Exempt Transfers. If you live 7 years after making the gift, it usually falls outside your estate for IHT. If you die within 7 years, the gift may still be counted and taper relief can reduce the tax due (depending on timing and how much of your nil-rate band is available). However, you need to be careful: if you “give” something away but still benefit from it (for example by gifting a home but continuing to live there rent-free), it may still be treated as part of your estate.
Trusts can help you control how assets are used and who benefits, while also supporting long-term IHT planning. They can be effective, but they are not “set and forget” and they come with rules, reporting and potential charges.
If you are considering trusts, it is vital to get the structure and admin right. Be sure to ask for expert help before setting up any trust.
Certain business and agricultural assets can qualify for IHT relief. However, rules and eligibility can be nuanced, while changes from April 2026 onwards may alter outcomes for some families.
If you own a trading company, farmland or business assets personally, planning early is essential.
Your home is often the biggest driver of IHT. Downsizing can still preserve valuable residence allowances in some cases, but the rules are technical and the paperwork must support the claim.
A surprising number of IHT problems come down to outdated Wills or unclear intentions. A properly structured Will can help ensure allowances are used as intended and that assets pass efficiently.
Additional strategies we may discuss
- Charitable giving: leaving 10% or more of your net estate to charity can reduce the IHT rate on the rest in some cases
Read: Inheritance Tax and charities - Life insurance in trust: can help provide funds to cover an IHT bill, or keep policy proceeds outside the estate in some cases
Read: life insurance and Inheritance Tax - AIM shares and IHT relief: a specialist area, with rule changes expected from April 2026
Read: AIM shares and changes to IHT relief - Pensions: these were historically useful for IHT planning, but reforms from April 2027 onwards mean expert advice is a must
Book a no obligation call with Ian, our IHT expert
The THP IHT planning process
We keep our Inheritance Tax planning process as clear and simple as we can. You’ll always know what happens next.
Below are the stages we’ll guide you through in order to help reduce your IHT liabilities.
1. We calculate your wealth
We map your estate to find out how much it is worth. We’ll look at assets, liabilities, property, pensions, business interests and how things are currently owned.
2. We work with you to create a plan
We’ll design a plan that’s focused on your priorities. This might include:
- Supporting children or grandchildren during your lifetime
- Protecting a family business
- Reducing IHT exposure on the family home
- Creating a legacy for charity
- Making sure documents and nominations align with your intentions
3. We put your plan into action.
This is when we help you put the plan into action. Depending on what we’ve agreed, we’ll help you make sure any changes you make are legitimate and save you money in the longer term.
4. We review your plan regularly
Tax rules change and so do families. That’s why we encourage you to review your plan regularly, so it stays effective and up to date.
Why choose THP for Inheritance Tax planning?
People come to us because they want calm, straight answers and a plan that works without bending the rules. When you use our Inheritance Tax planning service, you can expect:
- Clear, practical advice that reduces stress and avoids jargon
- Bespoke planning based on your real-world finances and family goals
- Joined-up thinking across property, pensions, investments and business interests
- A proactive approach so you are not caught out by rule changes or missed deadlines
- Local support from our teams in Wanstead, Sutton, Chelmsford and Saffron Walden
Book a no obligation call with Ian, our IHT expert
Meet the IHT planning team
Ian Henman
Ian joined THP in October 2016 to set up and manage THP’s new Legal Services Department.
From the age of 19, Ian spent almost 30 years building his career at Natwest / RBS becoming a client account manager to many local businesses.
Ian was looking for a new challenge and as THP was searching for someone to gain accreditations and spearhead the legal services department, there was a clear synergy. Ian is expert in many different strategies for reducing IHT liabilities and is able to shape his advice to your circumstances.
Adrian Hart
In 1974, Adrian Hart created a new accountancy practice from a single room in East London – and it is now one of the UK’s best firms of accountants with branches in the City, Wanstead, Cheam, Chelmsford and Saffron Walden.
Adrian has always been motivated by providing an exceptional service. With many decades’ experience in helping people plan for Inheritance Tax, he has particular expertise in advising clients with very complex financial affairs, including those who could benefit from setting up trusts.
Kirsty Demeza
Kirsty is a Client Director with a portfolio that ranges from ambitious start-ups to established companies with turnovers of up to £10 million. She is recognised for working closely with clients over the long term, helping them navigate growth, new premises and major contracts. Alongside tax planning, VAT and audit work, she often supports businesses with structured management accounts and KPI reporting, using regular performance data to highlight trends, manage risk and identify opportunities for further growth.
Kate Brasser
Kate is an FCCA-qualified Client Director who helps clients get to grips with both their day-to-day numbers and their longer-term business plans. With experience spanning sole traders through to larger owner-managed companies, she is particularly skilled at turning complex financial information into clear, practical insights that directors can act on. She’s also highly expert in IHT planning, working with business owners and individuals on effective tax-saving strategies.
Karen Jones
Having worked for one of the world’s largest accountancy firms, Karen uses her tax knowledge and skills to help clients obtain substantial reductions to their tax liabilities – including IHT. With an expanding portfolio of clients, she frequently faces a variety of challenges and relishes the experience she gains as she solves them and helps people to save money.
Mark Ingle
An owner-manager business specialist, Mark is adept at building relationships with our clients. “I like to help firms to grow and succeed and our business accounting services team has a lot to offer them.” Having worked for accountancy practices in London and Essex, Mark is experienced in supporting businesses of all sizes, as well as individuals needing tax advice, including IHT planning help.
FAQs
You can’t always eliminate IHT entirely, but you can often reduce it. There are many common, fully legal options for doing this, and our team will happily talk you through them.
In simple terms, if you give assets away and live for seven years afterwards, those gifts can usually fall outside your estate for IHT. If you die sooner, the tax position depends on the timing and the size of the gift. Detailed records also matter.
There are several allowances and exemptions, including an annual gifting exemption and certain small-gift and family event allowances. There is also an important exemption for gifts made regularly out of surplus income, which can allow larger amounts to be gifted without IHT, provided the rules are met and good records are kept.
Pensions have historically been a strong tool for IHT planning, because many pension death benefits have not formed part of the estate for IHT in the way other assets do. However, rules are changing, with reforms scheduled from 6th April 2027 that are expected to bring most unused pension funds and death benefits into the value of the estate for IHT purposes. Because the detail depends on the type of pension, your age, nominations and the latest legislation, this is an area where current, tailored advice is essential.
Don’t leave your legacy to chance.
Arrange an Inheritance Tax planning review today – it could save your family thousands and give you peace of mind.
The information on this page is general guidance only and is not tax, legal or financial advice. Inheritance Tax rules can change and outcomes depend on individual circumstances. Please speak to us for advice tailored to your situation.
Inheritance Tax News
Want to learn more about Inheritance Tax? If so, please browse our blog articles.
Inheritance Tax and charities: how gifts affect your IHT bill
Inheritance Tax and the Acceptance in Lieu scheme
Inheritance Tax changes and common questions
Gifts out of surplus income and Inheritance Tax
The THP Guide to UK Inheritance Tax Planning
