Minimising Inheritance tax

Every person has a nil rate band and for 2015/16 this is £325,000. This means if your estate is worth less than this, your beneficiaries have no inheritance tax to pay. But if it's worth more, they could be liable for up to 40% tax on your death. It is possible with planning to reduce any potential liability.

From April 6, 2017 a new transferrable residence nil rate band will be added to the existing £325,000 band where the family home is left to children (including adopted children) or grandchildren.

By April 6, 2020 eligible individuals will have the potential to pass on assets worth up to £500,000, including a home (or the proceeds from a previous home), without paying any Inheritance Tax.

This is being phased in as follows:


Tax year Additional residence nil rate band Existing nil rate band Potential combined nil rate band for an individual
2015/16 £0 £325,000 £325,000
2016/17 £0 £325,000 £325,000
2017/18 £100,000 £325,000 £425,000
2018/19 £125,000 £325,000 £450,000
2019/20 £150,000 £325,000 £475,000
2020/21 £175,000 £325,000 £500,000
2021/22 onwards will increase in line with the Consumer Price Index £325,000

For married couples and civil partners, the total could be up to £1 million if they are eligible. However, there is a gradual withdrawal of this relief for estates worth more than £2 million which means that in 2020/21 there is effectively no additional band for estates over £2.35 million and couples with estates worth more than £2.7 million.

How can we help you with inheritance tax planning?

I want to plan my estate

We can help you to understand if you have a tax liability on your estate and, if so, how you could reduce it when you die.

  • We'll simplify what can be a very complex subject
  • You'll also have access to a will-writing service through our legal services provider, Irwin Mitchell 1

Make an appointment

If you have sole or joint savings of £50,000 or more, or a sole or joint income of £50,000 or more per year then investment advice from one of our Financial Planning Managers may be right for you.

Use our online appointment booking form or call the number below to request an appointment with a Financial Planning Manager: 

  • We’ll take the time to understand your situation – where you are and where you’re heading.
  • You’ll get clear straightforward advice on investments and protection to help you meet your financial goals.
  • We'll make you aware of all fees and charges associated with our service.
  • We’ll advise and make a recommendation for you only after we have assessed your needs.
  • You get the reassurance of working with an experienced team – we've helped over 500,000 customers with their investments so we can help you too (as of March 2015).

What do I need to bring to my appointment?

  • Fill out our budget calculator (don't forget to print it off)
  • Bring along details of any savings, investments, life insurance policies, endowments, pensions and borrowing.

To make an appointment call +44 783 974 9373*

Request an appointment online

*Opening hours are Monday to Friday 8.30am to 7.30pm, and Saturday 9am to 12.30pm.

1 Irwin Mitchell LLP is a limited liability partnership registered in England & Wales, with number OC343897, and is regulated by both the Solicitors Regulation Authority (SRA number 509694) and the Law Society of Scotland. The word ‘partner’, used in relation to the LLP, refers to a member of the LLP or any employee of, or consultant to, the LLP (or any affiliated firm) who is a lawyer with equivalent standing and qualifications. A list of the members of the LLP, and of those non-members who are designated as partners, is displayed at the offices of Irwin Mitchell.

Will writing and estate planning, including the Trustee Act 2000, are not regulated by the Prudential Regulation Authority or Financial Conduct Authority.