Inheritance Tax
Planning Service
HMRC’s Inheritance Tax receipts have hit a record high of £8.5 billion, with property the single biggest driver. The nil-rate band remains frozen at £325,000 until 2030, meaning more estates are caught in the net every year.
We help UK families and business owners legally reduce their Inheritance Tax liability through tailored estate planning, trust structures, and timely pension advice before the rules change.
- 100% Compliance Rate
- IHT Planning Specialists
Client Retention
98%
Year on year
£2.4m+
Tax Saved for Clients
HMRC
Compliant
50+
Five-Star Reviews
Property
Tax EXPERTS
Fixed Fee
No hidden charges
£2.4m+
Tax Saved for Clients
Who We Are
UK specialists in Inheritance Tax planning for property owners
Inheritance Tax is a 40% charge on the value of your estate above the available nil-rate bands. For property owners, particularly those with substantial portfolios or a valuable main home, the potential IHT liability can be hundreds of thousands of pounds. Without early, carefully structured planning, a significant proportion of the wealth you have spent decades building can pass to HMRC rather than to your family.
At UK Property Tax Accountants, our IHT planning specialists work with property-owning families to design and implement strategies that legitimately reduce, defer, and manage their Inheritance Tax exposure. From gifting programmes and Family Investment Companies through to trust structures and Business Property Relief claims, we use every available tool to protect your estate.
From Family Investment Company (FIC) design and Inheritance Tax planning to property portfolio management and succession strategy, we act as your trusted financial partner.
IHT Thresholds and Rates
How Inheritance Tax is calculated
Each individual has a nil-rate band of £325,000, with an additional residence nil-rate band of up to £175,000 when a main home passes to direct descendants. Married couples and civil partners can combine allowances, giving a joint threshold of up to £1,000,000 against the family home. Anything above these thresholds is taxed at 40%.
The residence nil-rate band tapers for estates over £2 million — reducing £1 for every £2 above that figure, and disappearing entirely above £2.35 million. With the nil-rate band frozen at £325,000 since 2009 and set to remain so until at least April 2030, rising property values are quietly pulling more families into scope.
Our specialists review your estate against current IHT thresholds and help you make the most of every available allowance, from spousal transfers to gifting strategies — before more of your estate becomes taxable.
Gifting shares in a FIC to children or grandchildren constitutes a Potentially Exempt Transfer for Inheritance Tax purposes meaning the value of the gift falls outside the donor’s estate for IHT purposes if they survive for seven years. We design and implement FIC structures that integrate seamlessly with your existing property portfolio and investment holdings.
Quarterly
Proactive Reviews
100%
Compliance Rate
Gifting and Potentially Exempt Transfers
Gifting strategies to progressively reduce your estate and IHT exposure
A Potentially Exempt Transfer (PET) becomes fully IHT-free if the donor survives seven years from the date of the gift. Where death occurs between three and seven years, taper relief reduces the effective IHT rate from 32% at three to four years, down to 8% at six to seven years. Annual exemptions allow each individual to gift £3,000 per year free from IHT outright, plus £250 to any number of recipients.
We help families build a structured, documented gifting programme that steadily reduces the taxable estate — making the most of every available exemption year by year.
Annual gifting exemptions and gifts out of income fully utilised each year
Common Pain Points
Costly Inheritance Tax Mistakes Property Owners Must Avoid
Inheritance Tax planning for property owners contains a number of pitfalls that can undermine an otherwise well-designed strategy. These are the issues we most commonly identify and resolve.
Gift with Reservation of Benefit
If you give away a property but continue to live in it or benefit from it without paying a full market rent, HMRC treats the property as still forming part of your estate for IHT purposes. The gift is completely ineffective unless the donor either vacates the property or pays a market rent to the new owner.
Assuming Investment Property Qualifies for Business Property Relief
Business Property Relief can exempt qualifying business assets from IHT, but investment property property held to generate rental income rather than operating as a trading business generally does not qualify. Many property owners assume their portfolio qualifies for BPR and are surprised to find it does not.
Overlooking the Residence Nil-Rate Band Tapering
The residence nil-rate band is reduced by £1 for every £2 of estate value above £2 million. For larger estates, this means the effective IHT-free threshold can be considerably lower than expected. Planning to reduce the estate below the tapering threshold for example through gifts or FIC planning can restore the full benefit of the RNRB.
Not Using Both Spouses' Annual Gifting Allowances
Each individual has their own annual gifting exemption of £3,000. Many couples use only one exemption, leaving the other unused and not carried forward effectively. A coordinated gifting strategy uses both allowances every year, potentially reducing the combined estate by £6,000 per year.
Failing to Document Gifts Out of Normal Income
Gifts that qualify as normal expenditure out of income are fully exempt from IHT without any seven-year requirement. However, this exemption must be evidenced income and expenditure must be tracked to show the gift was made from surplus income and did not affect the donor’s standard of living. Poor documentation can mean HMRC disallows the exemption.
Free Confidential Family Office Review
Let’s discuss your family office tax position
Book a 30-minute consultation with our specialist accountant. We’ll review your current family structure, IHT exposure, and property portfolio and provide a fixed-fee proposal.
- Family investment company structuring
- Corporation Tax efficiency assessment
- Strategic tax and estate planning
- Transparent fixed-fee engagement
No obligation · Response within 24 hours · Fully confidential
Our Services
Comprehensive Inheritance Tax
Planning Services
From initial IHT exposure review through to gifting programmes, FIC structures, trust planning, and Business Property Relief claims, we provide a complete IHT planning service for property-owning families.
IHT Exposure Review
Full calculation of your current IHT liability, including available nil-rate bands, the residence nil-rate band, and any tapering. We explain your position clearly and quantify the tax at risk without any commitment to further work.
Gifting Strategy and PET Planning
Design and implementation of a structured annual gifting programme, maximising use of the annual exemption, small gift exemption, and gifts out of normal income, with full documentation of all transfers to support any future claim for exemption.
Family Investment Company Setup
Design and incorporation of a Family Investment Company to transfer future growth in property values outside the taxable estate, with bespoke share class structures reflecting the family’s succession intentions.
Trust Planning and Advisory
Assessment of whether a discretionary or interest-in-possession trust is appropriate for your circumstances, including comparison with FIC structures, and preparation of the trust deed and all HMRC registrations where a trust is established.
Business Property Relief Claims
Review of your property holdings to identify any assets that may qualify for Business Property Relief, including furnished holiday lettings and qualifying property development activity, and preparation of the BPR claim as part of the Inheritance Tax return.
IHT Return and Probate Support
Preparation of the IHT 400 Inheritance Tax return, calculation of the liability, and coordination with the executors and solicitors during the probate process to ensure the estate administration proceeds efficiently and with minimum additional tax cost.
How It Works
Get started in four simple steps
Changing accountants should be smooth and simple, not disruptive and difficult. Our skilled property accountants help you with every step of changing service providers so that your record-keeping and tax compliance remain intact.
Free Consultation
Tailored Proposal
Smooth Handover
Ongoing Support
Why UK Property Tax Accountants
Why Property Investors choose Us for Inheritance Tax Planning
Our practice is built entirely around property. That singular focus means deeper expertise, faster answers, and better outcomes for every client we serve.
Dedicated Named Accountant
You will always work with a single, named Chartered Accountant who knows your companies, your portfolio and your goals intimately, not a call centre or a rotating team.
ACCA Registered Auditor
Registered as auditors in the United Kingdom by the Association of Chartered Certified Accountants, providing you with expert advice you can rely on and trust completely.
Transparent Fixed Fees
You will never receive an unexpected invoice. All fees are fixed, all-inclusive and agreed upfront, with no hourly rates and no extra charges for additional advice or HMRC queries.
Proactive Tax Reviews
We run quarterly tax reviews throughout the year, not just at year-end, so your corporate structure and tax position are constantly optimised as your portfolio evolves.
Cloud Accounting Technology
As Xero Platinum Partners and QuickBooks Pro Advisors, we provide real-time financial visibility across your portfolio, fully MTD-compliant and accessible anytime, anywhere.
Full Ecosystem of Services
Beyond accounting, we offer cashflow forecasting, legal referrals, commercial mortgage broker introductions and contractor insurance, providing a complete professional ecosystem for your property business.
Client Stories
What our clients say about us
★★★★★
“UK Property Tax Accountant Team saved me over £18,000 in CGT when I sold two properties last year. Their knowledge of available reliefs is extraordinary. I strongly recommend them. Unlike my previous accountant, they picked up the phone every time.”
★★★★★
“We restructured our entire portfolio into a limited company on their valuable advice. The tax savings pay for their fees many times over and every decision was explained clearly. Moving to them was the best decision we made for our property business.”
★★★★★
“As a property developer I deal with complex VAT, SDLT and CIS issues on every project. They handle everything seamlessly and their proactive advice has saved us significant six-figure sums. Switching from our old firm was completely painless.”
FAQS
Common questions about Inheritance Tax Planning
What is a Family Investment Company and is it right for us?
In most cases, no. Business Property Relief exempts qualifying business assets from IHT, but property held for investment purposes generating rental income rather than being used in a trading business does not typically qualify. Furnished Holiday Lets and certain property development businesses may qualify in some circumstances. We review your specific holdings before advising on BPR eligibility.
How much IHT can a Family Investment Company save compared to personal ownership?
The saving depends on the size of the estate, the value of assets transferred into the FIC, and the length of time the structure has been in place. For a property-owning couple with an estate of £3 million above their nil-rate bands, the IHT saving from an FIC implemented 20 years before death can exceed £1 million. We model the saving for your specific circumstances as part of our initial review.
Does UK Property Tax Accountants advise on IHT planning as well as annual property tax compliance?
Yes. We advise on Inheritance Tax planning as an integrated part of your overall property tax strategy. The best outcomes are achieved when IHT planning is coordinated with ownership structure decisions, CGT planning, and succession arrangements, rather than being addressed separately at the last minute.
Are pension funds subject to Inheritance Tax?
From April 2027, the rules on pensions and Inheritance Tax are changing significantly. Currently, pension funds held in a defined contribution pension scheme are generally outside the estate for IHT purposes. However, from 6 April 2027, unspent pension funds will be brought within the scope of IHT and included in the taxable estate. This change means that pension planning needs to be integrated with broader estate planning immediately. We advise clients on the most efficient way to structure pension drawdown and lifetime giving in anticipation of this change.
How does your firm support UK family offices with complex tax and structuring needs?
We provide ongoing, joined‑up advice across your companies, trusts, Family Investment Companies and personal holdings, so your tax position and group structure are managed as one coherent picture rather than in isolation. We design and implement tax‑efficient structures, model IHT exposure, and coordinate with your other advisers to ensure decisions around property, investments and wealth transfer all align with your family’s long‑term objectives.
Still have questions?
Our property specialist accountants are ready to answer any questions about your specific tax situation with no obligation for an initial conversation.
- +44 121 262 1528
- Mon–Fri, 9am–5:30pm
Ready to get started?
Reduce your property tax bill
Book a free call with our property specialist accountant. We will review your structure and identify immediate savings opportunities.
- ACCA Registered
- Fixed Transparent Fees
- Onboarded Within 1 Week