Inheritance Tax is charged at 40% on anything you own at death above the Nil Rate Band, currently £325,000. It is widely regarded as one of the most punitive taxes, and it is not unusual for a married couple with a family home, ISAs, investments and a holiday property to face a bill approaching a quarter of a million pounds.
Gifts from income
Regular and affordable gifts made from income, once they leave your estate, are exempt from Inheritance Tax. Recorded properly, this is one of the quietest and most effective ways to reduce a future bill.
Potentially Exempt Transfers
Larger one-off gifts, known as Potentially Exempt Transfers, fall outside your estate after seven years, with taper relief applied after three. The seven-year clock is a familiar phrase; setting it running early is what turns it into a genuine allowance.
Business Property Relief and EIS
Business Property Relief removes qualifying trading company shares from Inheritance Tax once they have been held for two years. The Enterprise Investment Scheme offers 30% income tax relief, Capital Gains Tax deferral, and also qualifies for BPR, meaning EIS assets are Inheritance Tax free after two years. Investment advice on these is provided through Ascot Wealth Management (FCA no: 551744).
Planning, coordinated
Inheritance Tax is not a single lever; it is the sum of small, considered decisions taken over years. Because we sit alongside Ascot Wealth Management, the tax structure of your estate and the investment strategy behind it are designed together, not in isolation.