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Inheritance tax

Whether you’re looking to help your clients plan for the future, or want to learn more about inheritance tax, we have articles and other resources that can help with this.  

Autumn statement 2024 proposals

Inheritance tax on pension death benefits from April 2027

In the Autumn 2024 Budget statement, the government announced its intention to bring unused pension funds and death benefits within the value of an individual’s estate for inheritance tax purposes from 6 April 2027.

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Inheritance tax business relief changes

One of the changes announced in the Autumn Budget 2024 was to the inheritance tax business relief. Below is our understanding of the change and the impact on business owners

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Long term resident and inheritance tax

UK inheritance tax being based on domicile is changing from 6 April 2025. Instead, whether an individual pays UK inheritance tax (IHT) will be based on residence.

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Autumn Statement 2024 - inheritance tax frequently asked questions

In the Autumn 2024 Budget statement, the government’s made a number of announcements about inheritance tax. here we look at some of the questions we've been asked following the announcement.

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Pensions

Death benefits: Direction

In this article we explain what direction means when applied to the payment of pension death benefits and the reasons why you would use that rather than discretion. 

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Death benefits: Discretion and how to nominate a beneficiary

This article describes how discretion works and how a nomination form (expression of wish) can be used to let the scheme administrators/trustees know the individual’s wishes as to whom death benefits should be paid to.

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Inheritance tax - pensions v individual savings account

What are the differences between individual savings accounts and pensions when it comes to inheritance tax?

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How inheritance tax might work on transfer

Pensions are not normally subject to inheritance tax. However, there are certain circumstances when the value of the death benefits will count towards any inheritance tax payable by the estate.

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What is a spousal bypass trust?

A spousal bypass trust is a discretionary trust where an individual can place their lump sum death benefits. It is sometimes called a flexible trust.

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Pension death benefits in trust case study

In this case study we look at the benefit of setting up a trust to receive pension death benefits.

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Protection

Guide to inheritance tax planning

We know it can be tough to talk about Inheritance Tax with your clients, so we’ve created a toolkit to answer all your inheritance tax questions.

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Securing the future

A guide to inheritance tax planning using whole of life.

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Pure protection plans written into a discretionary trust - Rysaffe Planning

Rysaffe planning can be used to remove or reduce charges by placing pure protection plans into smaller discretionary trusts on consecutive days. Here we explain how this works

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What is a gift inter vivos policy?

Gifts made to anyone from your client’s estate are exempt from inheritance tax provided that they survive for a period of 7 years from the date the gift is made. Here we explain how this works.

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Other articles

Deductibility of debts for Inheritance Tax

The Finance Act 2013 introduced a change which limits the deductibility of debts in certain circumstances. Here we explain the changes.

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Residence nil-rate band

On the 6 April 2015 the residence nil-rate band was introduced. This is an additional threshold for inheritance tax planning above the current £325,000 threshold. Here we explain how this works.

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Taxation and trusts

Trusts can make sure the money from a client's plan ends up in the right hands, at the right time, quickly and tax efficiently.

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Webinars and CPD

Your pension questions answered

Since we started our pension webinars in 2022, a lot of commonly asked questions keep popping up. So, on 14 November 2024 our pension expert, Clare Moffat and our Consumer Finance Specialist Sarah Pennells took the time to answer the pension questions you've been asking. Including transfers, workplace pensions and taking money from pensions.

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Budget update and tax year end planning

Join Justin Corliss and Fiona Hanrahan as they explore key changes announced in the October 2024 Budget.

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What’s on advisers' minds?

In the webinar below, Craig delves into a compelling case study on intergenerational pension tax planning. He examines employer objections to implementing salary exchange and sheds light on common errors in carry forward calculations.

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Planning for later life

Join Fiona Hanrahan and Gregor Sked as they explore planning for pensions and protection for clients heading into or currently in later life.

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Dispelling myths around trusts

Join Fiona Hanrahan and Gregor Sked, Senior Technical Managers, where they’ll talk over dispelling myths around trusts in both the protection and pensions industries.

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Consumer articles

Our consumer site also has articles that you may find of interest and can be shared with your clients.

How does inheritance tax work

Inheritance tax used to be something only the wealthy expected to pay when they died. But soaring house prices have meant that many people who would never have seen themselves as rich may worry that they will leave behind an inheritance tax bill after they die.

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Changes to inheritance tax (IHT) on pensions from 2027

In the Autumn Budget, the Chancellor said that inheritance tax thresholds, which are the amount you can pass on when you die, before inheritance tax is due, are staying the same until 2030. But, from April 2027, pensions will no longer be exempt from inheritance tax. That means that inheritance tax may have to be paid on your pension when you die.

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What happens to my pension when I die?

When you die your partner, spouse or other beneficiaries may be entitled to your pension. However, how this works depends on the type of pension you have.

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Can you leave a pension to your children?

Passing on any money left in your pension pot can be a good way to help your children, but it's important to understand exactly how the system works

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Being an executor of a will

An executor is someone who is legally responsible for sorting out the legal and financial affairs of someone who's died.

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What is probate and do you need it?

When someone dies there is a list of things that need sorting out, from registering the death to organising the funeral. You may have been told that you need to get probate, but what is it and do you always have to get it? 

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Rates and factors

Inheritance Tax

Inheritance tax is a tax on the estate of someone who has died. This includes money, property and other assets. The standard inheritance tax rate is 40% of anything in the estate over the £325,000 threshold.

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Inheritance tax exemptions for gifts

There’s no inheritance tax to pay on gifts between spouses or civil partners. A spouse or civil partner can give their partner as much as they would like during their lifetime, as long as they live in the UK permanently and are legally married or in a civil partnership.

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Residence nil-rate band

On the 6 April 2017 the residence nil-rate band was introduced. This is an additional threshold for inheritance tax planning above the current inheritance tax threshold.

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Get in touch

Got a question? Request a call back from a member of our team.

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Further information