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Wills & Probate

Inheritance Tax Solicitors

Nicola Waldman
Nicola Waldman
Partner
Ian Lane
Ian Lane
Consultant
Philippa Barton
Philippa Barton
Partner
James Berry
James Berry
Senior Associate
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Josephine Russen
Associate
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Katherine Brown
Trainee

We can help you and your loved ones plan for a tax-efficient future. Our experienced and specialist solicitors regularly advise on income tax, capital gains tax and inheritance tax, helping to reduce or defer tax liabilities.

Tax law is becoming increasingly complex and the rules are constantly changing. We understand the pressures on your time and the need to protect your hard-earned money, property and possessions. We can simplify what may seem a complex and daunting process so you have one less thing to worry about.

Our clients have their own unique set of circumstances and goals. You can be confident our tax planning solutions will be tailored specifically to your needs.  

Inheritance Tax

Inheritance tax is a major source of worry for many people who are understandably concerned that the government will take the lion’s share of the money in their estate, leaving future generations with only a fraction of the wealth they worked so hard to create. It’s a complex area of law and mistakes can be costly.

We understand these anxieties and can help take the stress out of planning for inheritance tax on your money, property and possessions. Our specialist advisers have a wealth of experience in this area of law. With our guidance, you can plan ahead to minimise the amount of inheritance tax your estate will pay.

Inheritance tax advice is recommended if you have assets worth more than the current inheritance tax threshold of £325,000. Your estate may have to pay inheritance tax at the current rate of 40% on its value on anything above this amount.

Inheritance tax matters we can assist you with:

Our specialist tax solicitors can assist you with:

  • Setting up tax efficient will trusts
  • Making lifetime gifts
  • The transferable nil rate band legislation allowing married couples and civil partners to minimise inheritance tax
  • Making tax-efficient charitable bequests
  • Tax relief available on agricultural and business property
  • Inheritance tax-saving arrangements for high-net-worth estates
  • Advice on the use and availability of the Residence Nil Rate Band

Our specialists may advise, for instance, on tax efficient arrangements for your beneficiaries. You can be certain that our up-to-date knowledge will help you take advantage of all the inheritance tax planning strategies available.

How much inheritance tax will I have to pay?

Nile Rate Band

Currently, the first £325,000 of your estate is taxed at 0%. This is known as the ‘Nil-Rate Band’ and although it is a ‘rate’ of tax it means that amount is not subject to inheritance tax. The threshold for the ‘Nil-Rate Band’ is revised by the Government from time to time. The current Nil Rate Band came into force in 2009 and is not expected to change until the tax year ended 5th April 2021. Any change will be announced in the Budget each year. 

Any assets over and above this threshold are taxed at the rate of 40%. So, for example, if you have a total estate, including the family home, worth £500,000 then you will pay 40% tax on £175,000. This works out at a hefty tax bill of £70,000.

On 6 April 2017 a new ‘Nil Rate Band’ was introduced relating to the transfer of residential property to lineal descendants starting at £100,000 and increasing annually by £25,000 until 2020/21 to a maximum of £175,000. This is the Residence Nil Rate Band (RNRB).

Making sense of the complexity

The provisions relating to the RNRB are very complex, particularly the rules relating to who constitutes a lineal descendent. However in broad outline, from 6 April 2017, the RNRB applies to residences inherited by direct descendants in addition to the existing Nil Rate Band. 

The RNRB was phased in from 2017/18, increasing by £25,000 each year, reaching £175,000 in the  2020/21 tax year. As with the Nil Rate Band, any unused RNRB can be transferred to a surviving spouse or civil partner. This means that as of 6 April 2020, the maximum combined inheritance tax threshold for such couples is a total of £1 million.

Inheritance Tax Specialists at Hodge Jones & Allen

Specialist Experts

The breadth and depth of talent in our experienced team means that we can ensure that the solicitor you deal with is the right match for your specific situation. 

Our highly experienced inheritance tax specialists can assist you in preparing a plan for a tax-efficient future. Contact us to discuss your individual circumstances in greater detail on
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