The Lawyer in London

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The Lawyer in London

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  • Home
  • Helping you
    • Overview
    • Declarations of Trust
    • Deeds of Variation
    • Estate administration
    • Estate planning
    • Family Investment Company
    • Inheritance Tax (IHT)
    • Life without children
    • Making a Will
    • Powers of attorney
    • Trusts
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  • More
    • Home
    • Helping you
      • Overview
      • Declarations of Trust
      • Deeds of Variation
      • Estate administration
      • Estate planning
      • Family Investment Company
      • Inheritance Tax (IHT)
      • Life without children
      • Making a Will
      • Powers of attorney
      • Trusts
    • Paths to Parenthood
      • Adoption
      • Blended families
      • Egg donation
      • Fostering
      • LGBTQ+
      • Parental responsibility
      • Solo parents
      • Sperm donation
      • Supporting you
      • Surrogacy
    • About us
      • Meet the Lawyer in London
      • Why choose us?
      • Office locations
      • Disclaimer and legal info
    • Legal insights
    • Privacy Policy
    • Visit our Instagram
    • Amy Lane - gunnercooke
  • Home
  • Helping you
    • Overview
    • Declarations of Trust
    • Deeds of Variation
    • Estate administration
    • Estate planning
    • Family Investment Company
    • Inheritance Tax (IHT)
    • Life without children
    • Making a Will
    • Powers of attorney
    • Trusts
  • Paths to Parenthood
    • Adoption
    • Blended families
    • Egg donation
    • Fostering
    • LGBTQ+
    • Parental responsibility
    • Solo parents
    • Sperm donation
    • Supporting you
    • Surrogacy
  • About us
    • Meet the Lawyer in London
    • Why choose us?
    • Office locations
    • Disclaimer and legal info
  • Legal insights
  • Privacy Policy
  • Visit our Instagram
  • Amy Lane - gunnercooke

Inheritance Tax

What is Inheritance Tax (IHT)

Once deemed a tax for the wealthy, the IHT net is catching more people than ever before.  Generally, each individual has an IHT allowance of £325,000 (less any lifetime gifts made in the seven years before death) which they can leave on death before IHT is paid at 40%.  The £325,000 is transferrable on first death to any surviving spouse / civil partner if the estate is left to them on death. 

Residence Nil Rate Band (RNRB) - am I eligible?

Broadly speaking, the RNRB is available if you leave your main residence to your children or grandchildren (and a few other specific beneficiaries, limited to descendants) and your estate is worth under £2m at death.  The RNRB is not available if you do not have children.    


The RNRB gives you an additional £175,000 which again is transferrable to a spouse / civil partner on first death if the estate is left to them on death. 

How can I reduce my IHT liability?

There are a number of planning options (but care should be taken together with appropriate advice about anti-avoidance rules):- 


  • Charitable giving
  • Gifting assets and making use of exemptions
  • Setting up a trust or family investment company
  • Making your Will tax efficient
  • Nominating a trust to receive your death-in-service benefit / life policy.
  • Making use of deeds of variation in relation to  an inheritance.   

  • Disclaimer and legal info
  • Privacy Policy
  • Visit our Instagram
  • Amy Lane - gunnercooke

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