Inheritance tax planning

Inheritance tax planning advice to help you pass on more of your wealth — using current UK rules and a clear, documented plan.

Practical strategies to reduce or manage IHT

Inheritance Tax can be a surprise – especially when property values and other assets have grown over time. IHT is currently charged at 40% on the value of your estate above the tax-free threshold, subject to exemptions and reliefs. With the nil-rate band frozen at £325,000 until at least April 2031, more families are being drawn into scope every year.

There are two significant changes on the horizon that make planning more urgent than ever. From April 2026, Agricultural and Business Property Relief is being restructured, with the 100% rate only applying to the first £1 million of combined qualifying assets. From April 2027, most unused pension funds will be brought into the taxable estate, a change that could significantly affect estates where pensions were treated as IHT-free.

Beckett’s estate planning service helps you understand your position, make the most of current exemptions and reliefs, and put a structured plan in place while there is still time to act.

What you’ll get from our IHT advice

A clear estimate of your potential IHT exposure

We help you understand what may be taxable, what may be exempt, where allowances apply, and what the position looks like for your estate as a whole.

Gifting strategies with the right context

Gifts are generally outside IHT if you survive seven years after making them (with taper relief available on the tax if death occurs between three and seven years). We help you make gifts in a structured and tax-efficient way.

Residence nil-rate band clarity.

The residence nil-rate band (£175,000, also frozen to April 2031) can allow a couple to pass on up to £1 million free of IHT — but only where qualifying conditions are met. We check eligibility and how it interacts with your overall estate.

Pension estate planning reviewed urgently

From 6 April 2027, most unused pension death benefits will form part of the taxable estate. If your pension was a core part of your estate plan, we can review the implications and consider alternative strategies.

Trust and insurance options considered where appropriate

Trusts, discounted gift plans and life cover written in trust can all play a role in IHT planning. We assess whether these are suitable for your goals and circumstances.

Co-ordination with your other advisers

Where legal structures such as trusts or updated wills are involved, Becketts works alongside your solicitor and accountant.

Note on regulatory scope: Financial advice on inheritance tax and estate planning is a regulated activity in the UK. However, advice on wills and trusts is not regulated by the FCA. Becketts works with your legal advisers where those elements are required.

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Inheritance Tax Planning FAQs

When does inheritance tax apply?

IHT is charged on the value of your estate above the tax-free threshold — currently £325,000 (the nil-rate band). The standard rate is 40%. A married couple or civil partners can combine their allowances, potentially passing on up to £650,000 (or up to £1 million including the residence nil-rate band, where qualifying conditions are met). All thresholds are currently frozen until April 2031.

What is the residence nil-rate band?

The residence nil-rate band (RNRB) is an additional allowance of up to £175,000 that applies when your main residence passes to direct descendants (children, stepchildren, grandchildren). It starts to reduce – by £1 for every £2 over the threshold – where an estate exceeds £2 million, and is completely withdrawn at £2.35 million (individual). The RNRB is transferable between spouses and civil partners.

How does the seven-year gifting rule work?

Gifts you make during your lifetime are generally outside your estate for IHT purposes if you survive seven years after making them. These are known as Potentially Exempt Transfers (PETs). If you die within seven years, taper relief reduces the IHT liability on the gift — starting at 20% reduction between three and four years, rising to 80% reduction between six and seven years. Some gifts are immediately exempt regardless of survival (such as annual exemptions and small gifts).

What happens to my pension from April 2027?

Following the Autumn Budget 2024, most unused pension funds and death benefits will form part of your taxable estate for IHT purposes from 6 April 2027. Pensions are currently not included in the estate and are widely used as an IHT planning tool. This change is significant and we strongly recommend reviewing your position before the change comes into effect.

Can leaving money to charity reduce inheritance tax?

Yes. If 10% or more of the net value of your estate is left to qualifying charities, the IHT rate on the remaining estate drops from 40% to 36%. From April 2026, only UK-registered charities (and Community Amateur Sports Clubs registered with HMRC) qualify for this relief — charitable trusts that are not themselves registered charities will no longer count.

Should I use a trust for inheritance tax planning?

Trusts can be effective in estate planning, but suitability depends entirely on your goals, family structure and tax position. They are generally most useful for controlling how and when assets pass to beneficiaries, for gifts where you want to retain some benefit, or for life cover designed to sit outside the estate. We consider trusts as one tool among several — always alongside professional legal advice.

Tax treatment depends on individual circumstances. Tax rules, rates and thresholds can change — including significant changes announced in the 2024 Autumn Budget, some of which take effect from April 2026 and April 2027. This page provides general information only and does not constitute personal tax or legal advice. The Financial Conduct Authority does not regulate advice on Wills, Trusts or Estate Planning.

Book your first meeting at our expense

If you’re not sure where to start, tell us what you’re trying to achieve — for example, protect family wealth, help children now, or plan for the pension IHT changes. We’ll be in touch to arrange a conversation.