Inheritance Tax (IHT)

Inheritance Tax Planning Services in Peterborough & UK-Wide

Inheritance Tax (IHT) is often referred to as a “voluntary tax” — and with the right professional advice, much of it can be legally avoided. At Odiri Tax Consultants & Accountants, we help individuals, families, and business owners reduce their IHT exposure through strategic and HMRC-compliant planning.

Our team has over 20 years of experience in advising on estate structures, trusts, tax reliefs, and intergenerational wealth transfer. We combine deep technical knowledge with a personal, compassionate approach — ensuring your loved ones are protected from unnecessary tax burdens.

Who Needs Inheritance Tax Planning?

Many people mistakenly believe that Inheritance Tax (IHT) only affects the extremely wealthy — but in reality, more and more families across the UK are being drawn into the IHT net, especially as property values continue to rise.

If your total estate — including your home, savings, investments, pensions, business interests, and personal possessions — is valued over £325,000 (or £500,000 if you’re passing your main residence to direct descendants), your loved ones may face a 40% tax bill on anything above that threshold.

Inheritance Tax Review is essential for a wide range of people, including:

Homeowners

If you own your home — particularly in high-value areas — your estate may easily exceed the nil-rate band. With rising property prices, many families are now facing IHT liabilities without realising it.

Families with Children or Grandchildren

If you want to ensure that your wealth passes efficiently to your children or grandchildren, IHT review and advisory can:

Maximise what they receive
Avoid delays caused by probate and tax issues
Ensure your wishes are honoured

Planning ahead prevents loved ones from dealing with surprise tax burdens during a difficult time.

Business Owners & Company Directors

If you own or have shares in a limited company, partnership, or family business, Inheritance Tax could affect your business continuity and succession plan.

We help you:

Claim Business Property Relief (BPR)
Structure ownership to minimise tax
Protect company assets during probate

Without planning, your business may need to be sold to pay the tax.

Landowners & Farmers

If you own agricultural land or farm property, you may be eligible for Agricultural Property Relief (APR). However, the rules are complex and subject to strict HMRC criteria. We advise on:

Securing eligibility
Structuring assets correctly
Passing land to future generations without triggering large tax liabilities

Non-UK Domiciled Individuals or Those With Foreign Assets

Your domicile status and the location of your assets can impact your IHT exposure in the UK. We advise international clients on:

UK IHT on overseas property
Navigating double taxation treaties

Individuals With Significant Savings or Investments

Even without property or a business, large savings, ISAs, pensions, and investment portfolios can push your estate above the IHT threshold. We help you:

Make tax-efficient lifetime gifts
Set up family trusts
Use exemptions and reliefs to preserve value

Comprehensive Inheritance Tax (IHT) Services

At Odiri Tax Consultants & Accountants, we specialise in bespoke Inheritance Tax (IHT) planning that helps individuals, families, and business owners across the UK safeguard their estates and transfer wealth efficiently to future generations.

Our highly qualified tax specialists combine in-depth HMRC expertise, strategic financial insight, and practical estate planning experience to deliver tailored, compliant, and long-term solutions that preserve your wealth and honour your legacy.

Inheritance Tax planning is not a one-size-fits-all service — every family’s financial position, goals, and values are unique. That’s why we take the time to understand your full financial picture, then design a personalised IHT plan that aligns with your priorities while ensuring full tax efficiency.

What Our Comprehensive IHT Service Covers

Our IHT service provides end-to-end support, from reviewing your current assets to implementing proactive strategies that reduce or eliminate future tax exposure. We focus on six key areas to give you complete peace of mind:

Full Estate & Wealth Review

Effective inheritance planning starts with clarity. We conduct a detailed review of your financial situation to assess your IHT exposure and identify opportunities for tax efficiency.

We review:

Property ownership (residential, investment, or overseas)
Business assets, shares, or agricultural land
Savings, pensions, and investments
Life insurance policies and trusts
Gifts or transfers made within the last seven years

Our team then prepares a comprehensive IHT report showing your estate’s current value, estimated tax liability, and practical IHT advice. Understanding your current IHT position is the first step in protecting your family’s financial future.

Lifetime Gifting advice

Gifting assets during your lifetime is one of the most effective and legitimate ways to reduce your estate’s taxable value. However, the rules around gifting are complex — and poor planning can have unintended tax consequences. We help you structure tax-efficient gifts by:

Making use of annual exemptions and small gift allowances
Setting up Potentially Exempt Transfers (PETs) with correct documentation
Applying taper relief for gifts made within seven years
Ensuring your gifts meet HMRC compliance standards

Strategic lifetime gifting allows you to support loved ones now while lowering your IHT bill later.

Business & Agricultural Property Relief (BPR & APR)

If you own or manage a business or agricultural assets, you could qualify for significant Inheritance Tax relief. Our team specialises in navigating the rules surrounding Business Property Relief (BPR) and Agricultural Property Relief (APR). We can help you:

Assess eligibility and maintain qualifying conditions
Restructure shareholdings or partnerships for optimal relief
Prepare documentation and valuations for HMRC
Manage succession planning to preserve family ownership

We help business owners and farmers protect what they’ve built — ensuring continuity across generations.

Trusts & Family Investment Companies (FICs)

Trusts and Family Investment Companies are powerful tools in IHT , enabling you to control how and when assets are distributed while potentially reducing tax exposure. Our experts provide end-to-end support for:

Creating and managing Discretionary, Bare, or Interest in Possession Trusts
Using Family Investment Companies (FICs) for long-term tax-efficient planning
Filing trust tax returns and compliance reports to HMRC
Structuring trusts to protect assets from divorce or creditors

Trusts and FICs can shield your wealth while keeping control firmly in your hands.

Probate & Estate Administration Support

Dealing with Inheritance Tax after a bereavement can be overwhelming. Our compassionate specialists provide practical and efficient support for executors, families, and trustees. We handle:

Completion and submission of IHT400 forms and schedules
Identifying and claiming available reliefs
Preparing estate accounts and liaising with HMRC
Advising on post-death variations and spousal exemptions
Managing tax payments and correspondence

We handle the technicalities, paperwork, and HMRC communication — so your family doesn’t have to.

International & Non-Domicile IHT Planning

If you’re a non-UK domiciled individual or have assets abroad, your global estate may still be subject to UK Inheritance Tax. Cross-border IHT planning is complex — but our expertise ensures clarity and compliance.

We assist with:

Determining and documenting domicile status
Advising on UK IHT exposure for offshore assets
Setting up offshore trusts for asset protection
Navigating double taxation treaties and reliefs
Structuring global estates to minimise tax

Frequently Asked Questions About Inheritance Tax (IHT)

What is Inheritance Tax in the UK?

Inheritance Tax (IHT) is a tax paid on the value of a person’s estate (property, money, and possessions) when they die. In the UK, IHT is usually charged at 40% on estates worth more than the nil-rate band, currently £325,000 (or up to £500,000 if passing a main residence to direct descendants). Proper planning can reduce or eliminate this tax.

Who pays Inheritance Tax?

The executor of the estate is usually responsible for paying Inheritance Tax from the estate's funds before distributing assets to beneficiaries. In some cases, beneficiaries may be liable — especially if they received gifts within seven years of death.

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

Without proper IHT planning, your family could lose up to 40% of your estate to tax. This can cause financial strain, force the sale of family homes or businesses, and delay the distribution of your assets. Early planning helps ensure your wishes are honoured and your legacy preserved.

Do I need Inheritance Tax planning if my estate is under £325,000?

Even if your estate is currently under the threshold, property price increases, investment growth, or inherited wealth could push your estate into the taxable range in the future. It’s best to review your position regularly with a qualified tax adviser.

What is the 7-year rule for Inheritance Tax?

The 7-year rule applies to gifts made during your lifetime. If you survive more than seven years after making a gift, it is usually exempt from IHT. If you die within seven years, the gift may still be taxed — although taper relief can reduce the rate depending on how many years have passed.

What is Business Property Relief (BPR)

Business Property Relief (BPR) is a tax relief that allows you to pass on qualifying business assets either during your lifetime or as part of your will with up to 100% IHT relief. We help business owners structure their affairs to take full advantage of this valuable exemption.

What is the residence nil-rate band (RNRB)

The residence nil-rate band (RNRB) is an additional threshold (currently £175,000) that applies if you pass your main home to direct descendants (children or grandchildren). It can increase your tax-free allowance to £500,000 per person, or £1 million for married couples or civil partners.

What is Agricultural Property Relief (APR)?

Agricultural Property Relief offers up to 100% relief on the value of agricultural land and buildings, but only if certain conditions are met. This includes actively using the land for farming and meeting ownership duration requirements.

Can non-UK residents or foreign nationals be liable for UK Inheritance Tax?

Yes — non-UK domiciled individuals (known as non-doms) can still face UK Inheritance Tax on assets situated in the UK, such as property, shares, or bank accounts. Domicile status, rather than residency, determines your exposure to IHT. We specialise in helping international clients understand their UK tax obligations, establish domicile status, and structure overseas holdings to minimise exposure to double taxation.

Why is professional Inheritance Tax planning important?

Inheritance Tax laws are complex and change frequently. Professional advice ensures you use every available relief, avoid costly mistakes, and structure your estate in a way that reflects your personal wishes. Planning ahead not only saves tax but also reduces stress and conflict for your family later. Our experienced tax consultants have helped countless clients save significant amounts in IHT and protect their legacy.

Need expert help with Inheritance Tax?

Whether you’re planning ahead, managing a family estate, or seeking to understand your IHT exposure, Odiri Tax Consultants & Accountants provide clear, compliant, and confidential advice. Based in Peterborough, we serve clients across the UK and internationally.