Inheritance tax planning: How to pass on your wealth without paying inheritance tax

5 min Read Published: 01 Dec 2017

Inheritance tax earns the UK Government around £3.4 billion a year in revenue and this figure is set to increase. Part of the reason why the amount is so large is that inheritance tax is applied at a rate of 40% to individual estates over £325,000 in size. To put that into context the average house price in London is £481,000, way above the 0% inheritance tax allowance.

There is a misguided perception that inheritance tax is only for the wealthy but as the above figures demonstrate that is no longer the case. If you then add on your other assets such as your investments, pensions, bank accounts and belongings the chances are the tax man will take a big chunk of your estate leaving your family with less money to inherit.

Recent changes in pension legislation and inheritance tax rules mean that it is now possible to pass on your entire estate, including your house, to your family without paying any inheritance tax at all.

More importantly it is possible to eliminate inheritance tax:

  • legally using the new rules the Government has put in place to help you do so
  • and without using elaborate schemes or investments

Inheritance tax planning is also far easier than people realise. There are number of allowances, which you need to be aware of, as well as simple tasks you can carry out that can save you hundreds of thousands of pounds in inheritance tax.

Below I provide an easy two-step process that will help you quickly calculate your potential inheritance tax bill. I then introduce a simple guide which explains the simple ways in which everyone can reduce their inheritance tax bills.

STEP 1: Inheritance tax calculator – work out your potential IHT bill in 2 mins

To estimate your potential inheritance tax liability use this brilliant inheritance tax calculator. In less than 2 minutes it will quickly calculate the size of your potential inheritance tax bill were you to die. It is the best inheritance tax calculator online and was specifically designed to be simple to use.

Inheritance tax calculator

Our Inheritance Tax Calculator will guide you through a series of options which will allow you to enter monetary amounts specific to your circumstance and calculate any potential inheritance tax that may be due.

Use the calculator

STEP 2: Beginner's guide to inheritance tax planning

There are a number of simple bits of planning that can be used to eliminate inheritance tax on your own estate. Here is an excellent guide to eliminating inheritance tax which contains:

  • simple steps to cut your inheritance tax bill
  • details of how you can now pass on your home to your family free of inheritance tax
  • a great explanation of the simple ways a pension can be used to eliminate inheritance tax

Eliminating inheritance tax

This Inheritance Tax Guide is written by award-winning, independent, chartered financial planners. It will guide you through everything you should be doing now to eliminate inheritance tax.

Read the free guide

After reading the FREE 24 page guide to eliminating inheritance tax you will have also learnt:

  • which of your assets will attract inheritance tax and which assets will not
  • how to make the best use of your inheritance tax free allowance (and your spouse's)
  • the little known inheritance tax reliefs that you might be eligible to use
  • how trusts can be used to eliminate inheritance tax
  • what you should be doing now to eliminate inheritance tax
  • the simple ways to ensure you pass on more of your estate to your family rather than to the tax man

Eliminating Inheritance tax is all about simple inheritance tax planning measures which protect your assets for your family. The problem is that most people are just not aware of them.