What is the current Inheritance Tax threshold?

As of the latest update, the IHT threshold (also known as the nil-rate band) is £325,000. Estates valued below this amount are not subject to IHT. Any amount above this threshold is taxed at 40%.

Are there any exemptions or reliefs available?

Yes, several exemptions and reliefs can reduce the IHT liability, including: Spouse or civil partner exemption – Transfers between spouses or civil partners are generally exempt from IHT. Charitable donations – Gifts to registered charities are exempt from IHT. Business relief – Certain business assets may qualify for relief, reducing their value for IHT purposes.

Can I reduce my Inheritance Tax liability?

Yes, there are several strategies to reduce IHT liability, such as: Making lifetime gifts – Gifts made more than seven years before death are generally exempt from IHT. Setting up Trusts – Trusts can be used to manage and protect assets, potentially reducing IHT. Utilising exemptions and reliefs – Taking advantage of available exemptions and reliefs.

What is the Residence Nil-Rate Band (RNRB)?

The Residence Nil-Rate Band (RNRB) is an additional threshold for estates that include a home. As of the latest update, it allows an additional £175,000 to be passed on tax-free, provided the home is left to direct descendants (children or grandchildren).

How do I report and pay Inheritance Tax?

IHT must be reported to HM Revenue and Customs (HMRC) using the appropriate forms. The tax is usually due within six months of the end of the month in which the person died. If not paid on time, interest may be charged.

What happens if I don’t plan for Inheritance Tax?

Without proper planning, your estate may face a significant IHT bill, reducing the amount passed on to your beneficiaries. It’s important to seek professional advice to ensure your estate is managed efficiently and your loved ones are protected.

Inheritance Tax Advice | Nelsons | Derby, Leicester & Nottingham

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Helping you plan your inheritance tax

At Nelsons, we understand that planning for the future can be complex and emotionally challenging. Our team of experienced solicitors in Derby, Leicester or Nottingham is here to provide you with expert guidance on Inheritance Tax (IHT), ensuring your assets are protected and your loved ones are taken care of.

What is Inheritance Tax?

Inheritance Tax is due on your estate (property/land, savings and investments, jewellery, works of art and cars, etc.) when it is valued over the current IHT nil rate band. The tax is payable at 40% on the amount over the nil rate band.

Whilst it is usually only payable on death, there are certain circumstances when Inheritance Tax becomes payable during a lifetime, such as when assets are put into or held in certain Trusts.

Married couples and registered civil partners can increase the nil rate band on their estate when the second partner dies, by taking advantage of concessions that allow them to transfer the first spouse’s unused IHT nil rate band to the second spouse when they pass away.

Inheritance Tax and family wealth planning advice – how we can help

We can provide a specialist and personalised service, providing advice based on what you want to achieve and what you want to pass on to your loved ones upon your death.

Our team can provide advice in many cases, such as:

Discretionary and property Trusts within complex Wills structures
Lifetime gifts either to Trusts or individuals
Making sure full use is made of annual exemptions
Deeds of variation to improve the Inheritance Tax position

Our team keeps up to date with the latest tax processes and procedures so that we can always supply you with the best advice and service possible.

Meet the team

Jane Sutherland
Partner & Solicitor
Nadia Faki
Partner & Solicitor
Catherine McCannah
Partner & Solicitor
Helen Salisbury
Partner & Solicitor
Amanda Voakes
Partner & Solicitor

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Why choose Nelsons?

Recognised expertise – Our team is recommended by the independently researched publication, The Legal 500, as being one of the top teams of experts in the country. The team also includes solicitors who are full members of the Society of Trust and Estate Practitioners (STEP) – an international professional body for practitioners specialising in inheritance and succession planning.
Tailored solutions – We provide bespoke advice to suit your unique circumstances.
Client-centric approach – We prioritise your needs and work closely with you to achieve your goals.
Transparent fees – Clear and competitive pricing with no hidden costs.

Testimonials…

"Nelsons Solicitors Limited has an extensive offering, with practitioners having experience of trust administration, Court of Protection work, investment management, wills and probate..."

The Legal 500
"The legal work has been excellent and on time. A major difference between Nelsons and other major law firms we have dealt with is that they focus on a personal touch..."

The Legal 500 2023
"...Knowing they are there and can check up on any changes we need to make on legal issues is comforting."

The Legal 500 2023 (Continued)
"Nelsons Solicitors Limited‘s reputable practice is a well-established player in the Midlands and acts on matters ranging from wills and estates, lifetime and tax planning..."

The Legal 500 2023
"...asset protection and care fee planning, through to trust structuring, with a focus on high net-worth individuals and those with international assets."

The Legal 500 2023 (Continued)
"Key strengths and capabilities in my opinion are: – the ability to visit clients at home which reduced anxiety for our family – professionals who are knowledgeable, approachable and respectful..."

Referee feedback provided to The Legal 500 2024
"...Clear and accurate information regarding the processes involved – Efficient delivery of paperwork, etc."

Referee feedback provided to The Legal 500 2024 (Continued)

Planning for inheritance tax can be daunting, but you don’t have to do it alone. Contact us today on 0800 024 1976 or via our online enquiry form.

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Inheritance Tax FAQS

Below, we have answered some frequently asked questions concerning inheritance tax advice

What is the current Inheritance Tax threshold?

As of the latest update, the IHT threshold (also known as the nil-rate band) is £325,000. Estates valued below this amount are not subject to IHT. Any amount above this threshold is taxed at 40%.
Are there any exemptions or reliefs available?
Yes, several exemptions and reliefs can reduce the IHT liability, including:
- Spouse or civil partner exemption – Transfers between spouses or civil partners are generally exempt from IHT.
- Charitable donations – Gifts to registered charities are exempt from IHT.
- Business relief – Certain business assets may qualify for relief, reducing their value for IHT purposes.
Can I reduce my Inheritance Tax liability?
Yes, there are several strategies to reduce IHT liability, such as:
- Making lifetime gifts – Gifts made more than seven years before death are generally exempt from IHT.
- Setting up Trusts – Trusts can be used to manage and protect assets, potentially reducing IHT.
- Utilising exemptions and reliefs – Taking advantage of available exemptions and reliefs.
What is the Residence Nil-Rate Band (RNRB)?

The Residence Nil-Rate Band (RNRB) is an additional threshold for estates that include a home. As of the latest update, it allows an additional £175,000 to be passed on tax-free, provided the home is left to direct descendants (children or grandchildren).
How do I report and pay Inheritance Tax?

IHT must be reported to HM Revenue and Customs (HMRC) using the appropriate forms. The tax is usually due within six months of the end of the month in which the person died. If not paid on time, interest may be charged.
What happens if I don’t plan for Inheritance Tax?

Without proper planning, your estate may face a significant IHT bill, reducing the amount passed on to your beneficiaries. It’s important to seek professional advice to ensure your estate is managed efficiently and your loved ones are protected.