Inheritance Tax Planning

Inheritance Tax (IHT) is often regarded as one of the most punitive taxes, at 40% on anything that you own at death over the Nil Rate Band. This currently stands at £325,000, so many find that they are left with large tax bill that takes nearly half of the inheritance intended for their loved ones.

This is an example for a married couple:


Family Home


Stocks and Shares


ISAs / Cash Accounts


Holiday Property






This kind of number is not unusual; in fact it is fairly common, and there are a number of ways that it can be mitigated, through completely legal means.

Our team would be happy to talk through some of the planning techniques which would be best suited to your situation, including some of the following:


Gifting is a very effective method of reducing your IHT liability very simply. It can be split into two main areas.

Regular and affordable gifts of income

If you have enough income to maintain your usual lifestyle, you can make regular gifts which, once leaving your estate become exempt from IHT.

Potentially Exempt Transfers

Any gifts you make that are not considered to be regular or affordable – such as a lump sum of £50,000 will start the clock for a potentially exempt transfer.
After 7 years, the lump sum will be deemed to have left your estate and will not be liable for IHT purposes. Though this may seem like a long time, taper relief is applied, so there will be a benefit after only 3 years of making the gift.

Business Property Relief

Business Property Relief, or BPR, is a relief which stops shares in many trading companies from being liable to Inheritance Tax after they have been held for 2 years. This can be used as a highly effective mechanism of moving money from your estate for IHT purposes as well as other benefits.

We work closely with Ascot Wealth Management, a company regulated by the Financial Conduct Authority (registered no: 551744) who can provide investment advice around this.


The enterprise investment scheme (EIS) was initiated by the government to incentivize individual investors to raise venture capital for new businesses. The scheme provides a 30% income tax relief of the amount invested; allows deferral of CGT on assets brought into the scheme until disposal of the EIS investment plus all shares issued under the EIS scheme all qualify for BPR as well, which in turn relieves any assets held in EIS from IHT after two years.


Without a will, the strict and rigid ‘Rules of Intestacy’ apply. This means that instead of you making decisions as to how best to distribute your estate, the law decides.
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Care Home Planning

Lifetime trusts are set up during a settlor’s life, and assets or money settled into them immediately. This money or assets can be loaned out to beneficiaries by the trustees at any time, or can remain within the trust and be invested.
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Trusts play an integral part in protecting your wealth, giving you control over how your assets will be used in the future and confidence that they will protect and preserving family assets according to your wishes.
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Lasting Powers of Attorney

Lasting Powers of Attorney, also known as living wills, are documents that allow you to appoint people to make decisions on your behalf if ever the time should arise that you are mentally incapable of doing so.
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Ascot Estate Planning Ltd is a company registered in England and Wales, Company Number: 09269434. Our registered address: Scotch Corner, London Road, Sunningdale, Berkshire, SL5 0ER. Unless otherwise states, the information in this document was valid on 14th February 2018. This documents is not intended to provide advice, and not all services described will be suitable for all, you should seek appropriate advice.  The information and opinions expressed herein are considered valid at publication, but are subject to change without notice and their accuracy and completeness cannot be guaranteed. No part of this document may be reproduced in any manner without prior permission. © 2018 Ascot Estate Planning Ltd. Please note: This website uses cookies. To continue to use this website, you are giving consent to cookies being used.