Inheritance Tax Advice for High Net Worth Individuals

For high net worth individuals, inheritance tax is rarely a simple calculation. Property values, investment portfolios, business interests, pension wealth and international assets interact in ways that create both significant exposure and genuine planning opportunity — if you have the right advice.

At Inheritance Made Simple, we work with individuals and families whose estates require more than a standard will. We provide strategic, detailed inheritance tax planning that is built around your specific circumstances and implemented within HMRC guidelines.

The current inheritance tax framework creates a challenging environment for larger estates:

• The nil-rate band has been frozen at £325,000 since 2009 and will remain frozen until at least 2030

• The residence nil-rate band adds up to £175,000 where a home passes to direct descendants — but tapers away for estates above £2 million

• Rising property values and investment growth mean more estates than ever are exposed to IHT at 40%

• From April 2027, unused defined contribution pension funds will be included in the taxable estate for the first time

For a married couple with a combined estate of £2 million — increasingly common for homeowners in London and the South East — the potential IHT liability without planning can exceed £400,000. With the right structure in place, that figure can be reduced significantly.

Trusts remain one of the most effective tools for reducing IHT exposure and protecting family wealth. The right trust structure can remove assets from your taxable estate while retaining a degree of control over how they are managed and distributed. We advise on discretionary trusts, life interest trusts, loan trusts and family investment companies depending on your circumstances.

Gifts made more than seven years before death fall outside the estate for IHT purposes. A structured gifting programme — using annual exemptions, small gift allowances, gifts out of surplus income and potentially exempt transfers — can significantly reduce the value of a taxable estate over time. We design gifting strategies that are sustainable, properly documented and coordinated with your wider estate plan.

Business owners may qualify for Business Property Relief (BPR), which can reduce the value of qualifying business assets for IHT purposes by up to 100%. The rules are specific and the conditions must be met carefully. We work with business owners to ensure their shareholding and asset structure maximises available relief.

Until April 2027, defined contribution pensions sit outside the IHT net — making them an attractive vehicle for passing wealth to the next generation. The April 2027 change fundamentally alters this calculation. We are working with clients now to review their pension strategy and consider alternative structures before the legislation takes effect.

For clients with agricultural land and property, Agricultural Property Relief (APR) can reduce or eliminate IHT on qualifying assets. The interaction between APR and BPR requires careful analysis, particularly following recent legislative changes.

Every estate is different. The strategies above are not a menu to pick from — they are tools that work together as part of a coordinated plan. The value of specialist advice is in knowing which combination is right for your specific circumstances.

For clients with assets in multiple jurisdictions — property abroad, offshore investments, foreign pensions or international business interests — the IHT picture is more complex. UK domicile rules, the situs of assets, double taxation treaties and the succession laws of other jurisdictions all interact. We work with clients across the UK and internationally and refer to specialist cross-border counsel where required.

We work with a small number of clients at any one time, which means every matter receives senior-level attention from start to finish. Our fees are fixed and agreed in advance. We do not charge by the hour and we do not produce generic advice.

Your first consultation — by telephone, video or in person at our Mayfair or Bournemouth office — is free and without obligation. It gives us the opportunity to understand your estate fully and give you an honest assessment of your exposure and your options.

→ Book Your Free IHT Consultation — Mayfair & Bournemouth