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2026 FAMILY OWNED, PRIVATELY OWNED AND OWNER-MANAGED BUSINESS SURVEY

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Expert inheritance tax advice & estate planning

Protecting your wealth for the people who matter most

You’ve worked hard to build your wealth. Estate planning is the process of ensuring that, after your lifetime, this wealth is preserved and passed on to your chosen beneficiaries in the most effective and tax-efficient way. A crucial part of this process is managing Inheritance Tax (IHT), a tax on your estate that can significantly reduce the amount your loved ones receive.

With a potential tax rate of 40%, what was once considered a tax for only the very wealthy, is now a concern for many more families due to rising property values and frozen tax thresholds. Proactive planning is no longer a luxury; it is essential for protecting your legacy. Our integrated team of financial planners and tax specialists are here to provide the clarity and strategy you need to secure your family’s future.


What is inheritance tax (IHT)?

Inheritance Tax is a tax levied on an individual's estate after they die...

  • The standard rate: 40% on the value of your estate above allowances.
  • Who pays the tax? Typically paid by the executor from estate funds.
  • When is it due? Within six months of death, after which interest is charged.

Understanding your IHT allowances

Every UK resident has tax-free allowances...

AllowanceIndividual valuePotential value for a couple
Nil-Rate Band (NRB)£325,000£650,000
Residence Nil-Rate Band (RNRB)£175,000£350,000
Total potential threshold£500,000£1,000,000

Strategic ways to reduce your inheritance tax liability

Make lifetime gifts

  • Annual exemption: Gift up to £3,000 each year...
  • Small gifts allowance: Unlimited gifts up to £250 per person...
  • Wedding gifts: £5,000 to a child, £2,500 to a grandchild...
  • Normal expenditure out of income: Regular gifts exempt if from surplus income.

Use trusts to protect and control assets

  • Protect assets for young or vulnerable beneficiaries.
  • Provide for a surviving spouse while ensuring capital passes to children.
  • Ring-fence assets from claims like divorce settlements.

Leave a charitable legacy

Any gift to charity is exempt from IHT. Leaving 10% reduces the rate to 36%.


The essential legal foundations of your plan

Your Will: The cornerstone of your estate plan

A Will clarifies your wishes and ensures assets are distributed as you intend...

Lasting Powers of Attorney (LPA): Planning for incapacity

An LPA allows you to appoint someone to make decisions if you lose capacity...


Act now with Armstrong Watson

Don’t wait until it’s too late to plan for your estate...

Arrange a Free, Confidential Consultation

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