IHT hits estates above £325,000 (the nil-rate band), plus a £175,000 residence band if you leave your home to children or grandchildren. Couples can combine allowances — but house prices and pensions mean more and more families are in scope.
The sting: 40% tax above the thresholds.
The good news: reliefs exist — Business Property Relief, Agricultural Relief, careful use of gifts, and charitable giving.
The bad news: misunderstand the rules, and your family could pay more than necessary.
Things people don’t think about:
• From April 2027, pensions will fall into the IHT net.
• Life insurance outside a trust is part of the estate.
• Overseas property is caught if you’re UK-domiciled.
• The residence nil-rate band can be lost if your estate is over £2m.
Practical tip: Don’t assume “IHT won’t affect me.” Do the sums.
Call to action: Ask us to review your position — small changes now can save a big bill later.
Back to You are not Immortal – a practical guide to a delicate topic – IHT
