Associated Services
Get In Touch
Inheritance Tax Planning for Individuals and Families
Practical, honest advice to help protect what you’ve built for the people you want to leave it to.
Inheritance Tax is sometimes described as a voluntary tax, since careful planning can significantly reduce, or in some cases eliminate, a bill that might otherwise fall on your estate. Yet many families never get around to this planning until it’s too late to make full use of the options available. At Durhams Accountants we provide Inheritance Tax planning for individuals and families across Wakefield, Yorkshire and the wider UK, explaining your current position in plain English, identifying the allowances and reliefs available to you, and helping you plan calmly and practically for the future, rather than leaving it as an uncomfortable subject nobody addresses.
Understanding the Nil-Rate Bands
Every individual has a nil-rate band of £325,000, below which no Inheritance Tax is due, with an additional residence nil-rate band of £175,000 available when a main home passes to direct descendants such as children or grandchildren. Together these can shelter up to £500,000 per person from Inheritance Tax, or up to £1 million for a married couple or civil partnership, since unused allowances can transfer between spouses. The residence nil-rate band is gradually withdrawn for larger estates above £2 million, which is where more detailed planning often becomes necessary.
How Inheritance Tax Is Calculated
Inheritance Tax is charged at 40% on the value of your estate above your available nil-rate bands, though this reduces to 36% where at least 10% of the net estate is left to charity, an incentive worth considering as part of any wider plan. Gifts made during your lifetime can also affect your estate’s position, with different rules depending on how long before death they were made. Understanding how all of this interacts, rather than looking at any single rule in isolation, is where a proper review of your estate adds real value.
Practical Steps to Consider
Depending on your circumstances, practical planning might include making use of annual gift allowances, considering trusts for larger or more complex estates, reviewing how life insurance is structured to help cover a potential liability, or simply making sure your will is structured to make the most of available reliefs. There’s no single answer that suits every family, and some of these steps need careful thought around control and access to assets as well as the tax saving itself, which is why we talk through the practical implications, not just the numbers.
Our Process: How We Help With Your Estate Planning
1
Review your estate
We establish the value of your estate and your available allowances.
2
Calculate your current position
We work out any potential Inheritance Tax liability as things stand.
3
Identify the options
We set out realistic planning steps that could reduce that liability.
4
Talk through the implications
We discuss control, access and family considerations, not just tax.
5
Keep the plan current
We review your position as rules, assets or family circumstances change.
A Second Opinion on Existing Plans Is Always Welcome
If you already have a will or estate plan in place, perhaps arranged some years ago, it’s worth reviewing periodically since allowances, rules and your own circumstances all change over time. We’re happy to review an existing plan alongside, or instead of, your current adviser, checking it still makes the best use of available allowances and reflects your current wishes. There’s no obligation to move your wider affairs to us to get this review, though many clients find it convenient to do so afterwards.
Why Choose Durhams Accountants
Inheritance Tax planning touches on sensitive family territory as much as it does numbers, and we approach it with the same care either way. We explain your position clearly, set out realistic options rather than overly complex schemes that don’t suit your circumstances, and make sure the practical, human side of any decision is considered alongside the tax saving. Based in Wakefield and supporting families across Yorkshire and the UK, we combine technical knowledge of the current rules with patient, honest conversations about what actually matters to you.
Frequently Asked Questions
What is the current Inheritance Tax nil-rate band?
The standard nil-rate band is £325,000, with an additional residence nil-rate band of £175,000 available when a main home passes to direct descendants.
What rate of Inheritance Tax applies above the allowances?
The standard rate is 40% on the value above your available nil-rate bands, reduced to 36% where at least 10% of the net estate is left to charity.
Can a married couple combine their allowances?
Yes, any unused nil-rate band and residence nil-rate band can transfer to a surviving spouse or civil partner, potentially sheltering up to £1 million combined.
Do gifts made during my lifetime affect Inheritance Tax?
Yes, certain lifetime gifts can still count towards your estate depending on how long before death they were made, which is an important part of planning.
Is Inheritance Tax planning only relevant for very wealthy families?
No, with property values as they are, many ordinary estates now fall within scope of Inheritance Tax, which is exactly why early planning matters.
How much does Inheritance Tax planning advice cost?
Pricing depends on the complexity of your estate and the options under consideration. We agree a fee upfront once we understand your circumstances.
Want to understand your Inheritance Tax position?
Talk to us in confidence about your estate, or use the form alongside this page for a no-obligation review.