Inheritance Tax (IHT) is often described as a voluntary tax — not because you can choose whether to pay it, but because, with the right planning, much of it can be reduced or removed altogether. Yet every year, families across the UK pay more IHT than they need to, simply because the conversation was never had.

At Hanbury Financial Planning, we think that’s a shame. The wealth you’ve built over a lifetime — your home, your savings, your investments, your business — should pass to the people and causes that matter most to you, not disappear in a tax bill your family wasn’t expecting.

Why IHT matters more than ever

The standard nil-rate band has been frozen at £325,000 since 2009, and the Chancellor has confirmed it will remain frozen — along with the £175,000 residence nil-rate band — until April 2031. With property values having risen significantly over that period, more families than ever are being drawn into the IHT net, often without realising it. Estates that wouldn’t have been a concern a decade ago are now sitting well above the threshold.

From April 2027, the rules are changing again: most unused pension funds and death benefits will be brought within the scope of IHT for the first time. For many of our clients, this is a significant shift — pensions have long been seen as a tax-efficient way to pass wealth down through the generations, and the new rules mean existing plans may need a fresh look.

How we can help

Good IHT planning isn’t about chasing schemes or stripping assets out of your estate at the expense of your own financial security. It’s about understanding what you have, what you’ll need for the rest of your life, and what’s genuinely surplus — and then putting a thoughtful plan around it.

Working together, we’ll look at:

• Making full use of your nil-rate band and residence nil-rate band, including transferable allowances between spouses and civil partners
• Lifetime gifting — what you can give, when, and to whom, including the seven-year rule and the often-overlooked “gifts from surplus income” exemption
• Trusts, where appropriate, to retain a degree of control while moving value outside your estate
• Whole-of-life protection written under trust to provide a tax-free lump sum that meets the bill when it falls due
• Tax efficient investing where it suits your wider plan and attitude to risk
• The interaction between your pensions, ISAs, investments and estate — particularly important ahead of the 2027 pension changes
• Charitable giving, which can reduce the headline rate of IHT from 40% to 36% on the rest of your estate

Every family is different, and every plan we put together is built around your circumstances, your relationships and your wishes. We work alongside your solicitor and accountant where helpful, so that your will, your power of attorney and your financial plan all pull in the same direction.

Starting the conversation

For many people, the hardest part of IHT planning is simply starting the conversation — both with us and with the family. We’ll make it straightforward, and we won’t rush you. A good first step is often a clear picture of where you stand today: what your estate is likely to look like, what the bill would be if nothing changed, and what your options are.

If that sounds useful, do get in touch.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

Trusts are not regulated by the Financial Conduct Authority.