Inheritance Tax Planning
Specialist inheritance tax and estate planning advice across West and South Yorkshire, including Leeds, Sheffield, Wakefield, Huddersfield, Barnsley and Rotherham.
We help individuals and families reduce inheritance tax exposure and pass on wealth efficiently, while maintaining financial security throughout retirement.
Careful planning ensures your family receives more of your estate, with less complexity at an already difficult time.
What is inheritance tax planning?
Inheritance tax planning is the process of structuring your estate to minimise the tax payable on death and ensure your assets pass in line with your wishes.
It forms a core part of wider financial planning, alongside retirement planning and investment strategy. Effective planning considers tax, control, timing and family circumstances, not tax alone.
What is included in your estate?
Your estate may include:
- Your home and any additional property
- Cash savings and bank deposits
- Investments such as ISAs and general investment accounts
Pension funds and pension death benefits, depending on the date of death and the applicable inheritance tax rules*
- Business interests or shares
- Personal possessions of value
Understanding the composition of your estate is essential when assessing inheritance tax exposure.
*Most unused pension funds and pension death benefits are currently held outside an individual’s estate for inheritance tax purposes. From 6 April 2027, most unused pension funds and pension death benefits will be included within the estate when calculating inheritance tax. Death in service benefits payable from registered pension schemes will remain outside the estate.
How inheritance tax works
Inheritance tax is typically charged at 40% on the value of your estate above available allowances.
Current thresholds:
The standard Nil Rate Band is £325,000 per individual. The Residence Nil Rate Band may provide an additional allowance of up to £175,000 where a qualifying residence is passed to direct descendants.
The Residence Nil Rate Band is gradually reduced where the value of the estate exceeds £2 million.
Unused allowances can generally be transferred between spouses and civil partners. This may allow a qualifying couple to pass an estate of up to £1 million without inheritance tax.
The Nil Rate Band and Residence Nil Rate Band are currently fixed at their existing levels until 5 April 2031.
How we help reduce inheritance tax
We provide structured inheritance tax planning tailored to your circumstances, including:
- Use of annual gifting allowances and exemptions
- Structuring larger gifts as potentially exempt transfers
- Reviewing pension arrangements to optimise death benefits
- Advising on the use of trusts where appropriate
- Incorporating business and agricultural relief where available
- Aligning investment strategy with estate planning objectives
- Ensuring your Will reflects your current intentions
- Coordinating with solicitors and tax specialists
Our role is to ensure your strategy is clear, compliant and aligned with your long-term objectives.
Our inheritance tax planning process
Our approach is structured and ongoing:
Assessment
Review your assets, liabilities and objectives
Tax modelling
Quantify potential inheritance tax exposure
Strategy
Identify appropriate planning opportunities
Implementation
Coordinate recommendations across investments and legal structures
Ongoing review
Ensure your plan remains effective as legislation and circumstances change
Example: inheritance tax in practice
A couple in Leeds with an estate of £1.85 million:
- Allowances available: £1,000,000
- Taxable estate: £850,000
- Potential tax liability: £340,000
Following structured planning:
- Lifetime gifting reduces estate value
- Investments repositioned to utilise available reliefs
- Pension benefits reviewed and structured efficiently
Revised outcome:
- Taxable estate significantly reduced
- Inheritance tax liability reduced to approximately £120,000
Early planning can materially improve the outcome for your beneficiaries.
Why early inheritance tax planning matters
Planning early provides greater flexibility and access to more effective strategies.
It allows you to:
- Reduce potential tax exposure over time
- Support family members during your lifetime
- Retain control of your financial position
- Provide clarity for those managing your estate
The performance of your investments is subject to risk(s). Its performance may fluctuate based on movements in the market and economic condition(s). Capital at risk. Currency movements may also affect the value of investments. You may get back less than you originally invested. Past performance is not a reliable indicator of the future performance. Tax treatment is based on individual’s unique circumstances. The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.
Technical information. Tax treatment depends on individual circumstances and may change in the future. Inheritance tax planning can involve complex legal and taxation considerations. Where appropriate, we work alongside solicitors, accountants and other professional advisers. Last reviewed: 18 July 2026.
Inheritance tax planning in Leeds & surrounding areas
We provide advice to clients across Leeds and the wider region, including Sheffield, Wakefield, Huddersfield, Barnsley and Rotherham.
If you are approaching retirement or have accumulated assets of meaningful value, inheritance tax planning should form part of your overall financial strategy.
Speak to an independent financial adviser
If you would like to understand your inheritance tax position and explore appropriate planning strategies, you can arrange a complimentary 15-minute discovery call at a time convenient to you using the link above. Alternatively, you are welcome to contact us at contact@wealthconnectfp.com.
FAQs
Most unused pension funds and pension death benefits are currently held outside an individual’s estate for inheritance tax purposes.
From 6 April 2027, most unused pension funds and pension death benefits will be included within the value of the estate when calculating inheritance tax. Death in service benefits payable from registered pension schemes will remain outside the estate.
The changes make it increasingly important to consider pensions alongside your wider retirement, beneficiary and estate planning arrangements. Pension decisions should continue to reflect your income requirements, financial security and intended beneficiaries, rather than inheritance tax considerations alone.
Qualifying trading businesses, partnership interests and shares in unlisted trading companies may be eligible for Business Relief.
For deaths on or after 6 April 2026, up to £2.5 million of qualifying business and agricultural property can receive 100% relief. Qualifying value above this allowance will generally receive 50% relief.
Some assets, including certain AIM shares and personally owned assets used by a business, may only qualify for 50% relief.
Eligibility depends on the type of business, the asset held and the length of ownership. Businesses mainly involved in investments or property dealing will not usually qualify. Specialist tax and legal advice should be obtained.
