Inheritance Tax Planning in Mayfair

Inheritance tax in Mayfair - why it demands specialist planning

Mayfair property values mean that even modest homes exceed the available nil-rate bands many times over. A flat off Berkeley Square or a townhouse near Grosvenor Square will, on its own, place a family squarely inside the 40% inheritance tax zone before any other asset is considered.

Layer in the things Mayfair clients typically own - UK and overseas investment portfolios, private business interests, art and collectibles, life policies, defined-contribution pensions - and the picture becomes substantially more complex than a standard estate.

The standard response - a Will and the £3,000 annual gift allowance - does almost nothing against an estate of this size. What is required is a coordinated strategy covering property ownership structure, pension nominations and drawdown strategy, business interests, lifetime gifting, trust arrangements and succession planning, designed and reviewed as a single plan.

Inheritance Made Simple provides that level of estate planning to Mayfair clients who require a service built around their actual position, not a template.

The April 2027 pension inheritance tax change

From 6 April 2027, unused pension assets will be included in the taxable estate for inheritance tax for the first time. The change is set out in the Finance Act 2026 - it is law, not consultation.

For Mayfair clients with SIPPs, personal pensions and defined-contribution schemes, this is a material new exposure. Estates where the nil-rate bands are already exhausted by property alone will face 40% on every pound of pension wealth that remains on death.

The strategies available before April 2027 - restructuring nominations, accelerating drawdown into trusts, life cover written in trust to fund the IHT bill, charitable legacies - are significantly broader than the strategies available after. Anything that depends on a seven-year clock needs to be set running now.

The April 2026 Business Property Relief changes

From April 2026, Business Property Relief and Agricultural Property Relief are capped at £1m combined for 100% relief. Above that cap, only 50% relief applies - an effective 20% inheritance tax charge on assets that, until recently, were free of IHT entirely.

Mayfair clients with private trading company shares, AIM portfolios held for BPR, or commercial property held through LLPs need an immediate review of how those structures will perform under the new rules.

What our Mayfair service covers

Discretionary trusts, life-interest trusts and insurance trusts to remove capital from the taxable estate while keeping family control over how and when assets pass on.

Deed of variation work on estates where a Will has already taken effect but the original distribution is inefficient.

Full Will writing and review - making sure both nil-rate bands and the residence nil-rate band are used correctly across spouses.

Pension death-benefit nomination review and drawdown strategy specifically structured for the April 2027 change.

Lasting Powers of Attorney - both Property & Financial Affairs and Health & Welfare - so the plan cannot be derailed by loss of capacity.

Lifetime gifting programmes structured around the seven-year rule, annual exemptions, the small-gifts allowance and regular gifts from surplus income.

Business succession planning - coordinating the sale or transition of business interests with the wider estate plan.

Why private clients in Mayfair choose Inheritance Made Simple

28 years of independent estate-planning practice. Not tied to any single insurer, platform or investment house - every recommendation is selected from the whole of market.

Offices in Bournemouth and London W1J, with regular client meetings across Mayfair, Belgravia, Knightsbridge, Chelsea and the wider West End.

Every engagement begins with a complete estate review - the consultation is not used to sell a product but to understand the position. Discretion, personal attention and a single point of contact throughout.