Estate & Inheritance Tax Services

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Inheritance tax (IHT) is a tax payable on the value of your estate over the nil-rate band when you die. For this purpose, your estate comprises property, Cash and Investments, businesses, jewellery, works of art, vehicles, household items, e.g. electrical equipment, life assurance proceeds (unless they are written under trust), overseas assets etc. 

If the total value of your estate is more than your nil-rate band, then the amount above the nil rate band will usually be liable for tax at a rate of 40%. 

For example, let's say your estate is worth £600,000, and you want to leave everything to your children. If your nil rate band is £325,000, your IHT bill will be £110,000– that's 40% of £275,000.

To work out the value of your estate, you:

• list all your assets, including money in the bank, property, possessions, investments, savings and life insurance; 

• deduct any debts and liabilities, such as your mortgage; and 

• calculate, and keep a record of the current value of your estate, including any property valuations

The nil rate band (NRB), also known as the inheritance tax (IHT) threshold, is the amount up to which an estate has no IHT to pay. You can pass on assets within your nil rate band without any Inheritance Tax being charged. The allowance is currently £325,000 per person, and this amount will remain frozen until April 2026.

The NRB can be transferred between married couples and civil partners when one spouse dies, regardless of how long ago this happened. An individual can have a maximum of two nil rate bands, but these can be transferred from more than one spouse for people who have had several marriages or civil partnerships.