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Inheritance Tax Articles

How inheritance tax actually works in England and Wales: the £325,000 nil-rate band (frozen until April 2031), the residence nil-rate band, the £2.5 million APR and BPR allowance from April 2026, gifts and the seven-year rule, and the April 2027 pension change.

All 50 inheritance tax articles

Agricultural Property Relief Reform 2026 UKAgricultural Property Relief changes from April 2026: a £2.5 million cap, 50% relief above it, and what farming families should review in their wills.10 June 2026 · 5 min read
Business Property Relief on Commercial Property UKBusiness Property Relief on commercial property: 50% relief under IHTA 1984 s.105(1)(d), the s.105(3) investment trap that denies it, and HMRC challenges.10 June 2026 · 5 min read
IHT Corrective Account UKIf the value of an estate changes after the original IHT account was submitted, because assets were valued incorrectly, additional assets come to light.9 June 2026 · 4 min read
Loan Trust IHT Planning UKA loan trust lets you lend a lump sum to a discretionary trust, freeze that debt in your estate, and remove all future growth from Inheritance Tax.9 June 2026 · 5 min read
RNRB Downsizing Addition UK: Sell Before DeathSelling or moving out of your home before death does not mean losing the residence nil-rate band. How the downsizing addition protects it, with conditions.9 June 2026 · 4 min read
Section 144 IHT UK: The 2-Year Discretionary WindowIHTA 1984 s.144 provides that an appointment of assets out of a discretionary will trust within two years of death is read back into the will as if made by.9 June 2026 · 4 min read
Do You Pay Tax on an Inheritance UK? Income Tax, CGTBeneficiaries in England and Wales pay no income tax or CGT on an inheritance; IHT is paid by the estate first. But income and later gains are taxable. 2026.8 June 2026 · 7 min read
Gifting Money to Children UK: The £6,000 Annual RuleEach person has a £3,000 annual IHT exemption, so a couple can give £6,000 per year tax-free. Seven-year rule, wedding gifts and what HMRC expects explained.8 June 2026 · 8 min read
Gifting Money to Grandchildren UKHow grandparents can gift money to grandchildren in England and Wales, the £2,500 wedding gift exemption, annual gifting allowance, regular gifts from income.8 June 2026 · 8 min read
How to Get an IHT Reference Number from HMRCApply for an inheritance tax reference via form IHT422 online, at least 3 weeks before paying; needed before paying IHT, with tax due 6 months after death.8 June 2026 · 5 min read
HMRC Inheritance Tax Compliance Check UKWhat triggers an HMRC inheritance tax enquiry, from undervalued property to omitted gifts, the enquiry time limits, and how an executor should respond.8 June 2026 · 5 min read
IHT205 Form UK: When to Use It and How to Complete ItIHT205 covers excepted estates below the IHT threshold. Most now file online. When the paper form still applies, what to include and how to file it. 2026.8 June 2026 · 5 min read
IHT Overpayment Refund UKReclaim overpaid IHT: loss on shares (IHTA 1984 s.178), loss on land (s.191), deeds of variation (s.142) and HMRC errors. Submit IHT35 or IHT38. 2026.8 June 2026 · 6 min read
Inheritance Tax on Savings UK: ISA and BondsAll savings and investments in your sole name are included in your estate for inheritance tax, cash, ISAs, Premium Bonds, NS&I, and investment accounts.8 June 2026 · 5 min read
Paying Inheritance Tax in Instalments UKInheritance tax on property, businesses and unlisted shares can be spread over 10 yearly instalments. Learn which assets qualify and the interest rules.7 June 2026 · 10 min read
Agricultural Property Relief UKFrom April 2026 APR is capped at £2.5m per person, combined with BPR. Guide to farm inheritance tax, the occupation test and succession planning. 2026.13 May 2026 · 9 min read
Business Property Relief UK: Cut IHT by Up to 100%Business Property Relief can cut inheritance tax on qualifying business assets; from April 2026 it is capped at £2.5 million per person, combined with APR.13 May 2026 · 10 min read
Domicile and Inheritance UK: Why It Decides Your IHTYour domicile, not nationality or residence, decides which law governs your estate and whether you pay full UK IHT; domicile of origin and choice explained.13 May 2026 · 8 min read
Equity Release and Inheritance Tax UKEquity release through a lifetime mortgage reduces your estate value and can lower your IHT bill, but the loan plus rolled-up interest cuts the inheritance.13 May 2026 · 8 min read
How to Avoid Inheritance Tax UKThere is no single way to eliminate inheritance tax, but 12 legal strategies can reduce or eliminate it: gifting, trusts, pensions, business relief and more.13 May 2026 · 12 min read
Inheritance Tax on Gifts UK: Rules and ExemptionsThe UK has seven inheritance tax gift exemptions, from the £3,000 annual allowance to the seven-year rule for larger gifts. How each one works. 2026 guide.13 May 2026 · 9 min read
Inheritance Tax on Property UK: RNRB GuideProperty is the biggest asset in most UK estates. The residence nil-rate band adds up to £175,000 when you leave your home to direct descendants. 2026 guide.13 May 2026 · 11 min read
ISAs and Inheritance Tax UK: What Your Estate PaysISAs escape income tax and capital gains tax but not inheritance tax; at death the wrapper ends and the full value is taxable in your estate. Cut the bill.13 May 2026 · 8 min read
Joint Property and Inheritance Tax UKJointly owned property is always part of your estate for inheritance tax, except when it passes to a spouse. Joint tenants vs tenants in common explained.13 May 2026 · 8 min read
Life Insurance and Inheritance Tax UKLife insurance can be caught by inheritance tax if the policy is not written in trust. A £500,000 payout could lose £200,000 to IHT, and the fix is simple.13 May 2026 · 8 min read
Nil Rate Band Discretionary Trust UKA nil rate band discretionary trust shelters up to £325,000 from inheritance tax on the first death of a couple. How it works and whether it still helps.13 May 2026 · 9 min read
Nil Rate Band UK: Your £325,000 IHT AllowanceThe nil rate band is £325,000, frozen until 2031; combined with the Residence Nil Rate Band, spouses can pass up to £1m free of inheritance tax (IHT).13 May 2026 · 8 min read
Pension Inheritance Tax 2027 UKFrom 6 April 2027, unused pension pots will count in your estate for inheritance tax. What the change means, who it affects, and how to plan ahead sensibly.13 May 2026 · 9 min read
Residence Nil Rate Band UK: The £175,000 Home AllowanceThe residence nil-rate band adds up to £175,000 to your IHT allowance when you leave your home to direct descendants, giving couples a combined £1,000,000.13 May 2026 · 10 min read
Taper Relief Inheritance Tax UKTaper relief reduces inheritance tax on gifts made 3 to 7 years before death. See the 7-year rule, the sliding-scale table, and the common misunderstanding.13 May 2026 · 9 min read
Transferable Nil Rate Band UK: Double Your AllowanceHow married couples and civil partners transfer unused nil rate band on the first death (s8A-8C IHTA 1984), shielding up to £1 million from IHT on the second.13 May 2026 · 8 min read
7-Year Rule IHT UK: Taper Relief TableHow the 7-year rule works for inheritance tax: gifts fall out of your estate after 7 years, with taper relief cutting the rate from 40% between years 3 and 7.12 May 2026 · 9 min read
Agricultural Property Relief Budget 2024 UKThe October 2024 Autumn Budget capped 100% Agricultural and Business Property Relief; the Finance Act 2026 set the cap at £2.5 million from 6 April 2026. · 9 min read
Agricultural Property Relief on a Farmhouse UKHow a farmhouse qualifies for APR: the character appropriate test, HMRC's working farmer approach, the key cases and the April 2026 cap. Full guide for 2026. · 10 min read
Annuity and Inheritance Tax UKFind out whether an annuity is subject to inheritance tax on death, how capital-protected and joint life annuities differ, and when no IHT arises at all. · 8 min read
Business Property Relief on Shares UKHow Business Property Relief applies to AIM and unquoted shares in England and Wales: the 2-year rule, the April 2026 £2.5m allowance and IHT planning. · 8 min read
Deeds of Variation UK: The 2-Year IHT WindowA deed of variation lets beneficiaries redirect an inheritance within two years of death, read back for IHT and CGT under IHTA 1984 s.142 and TCGA 1992 s.62(6).
Family Investment Companies UKA family investment company can reduce inheritance tax, shift income to lower-rate taxpayers and keep control by gifting growth shares to the next generation.
Gift with Reservation of BenefitA gift with reservation of benefit arises under the Finance Act 1986 when you give away an asset but keep benefiting from it, so it stays in your IHT estate.
Bereaved Minors Trusts and IHT UK: s71A IHTA 1984 ExplainedA bereaved minors trust (bmt) is a special type of will trust that qualifies for exemption from the IHT relevant property regime under s71A IHTA 1984. · 9 min read
IHT and EMI Shares UKHow inheritance tax applies to EMI share options and shares, when Business Property Relief is available, the April 2026 cap, and CGT rebasing on death. · 10 min read
IHT100 Form UK: Trust Reporting Made ClearTrustees of discretionary and relevant property trusts report IHT chargeable events on form IHT100: ten-year anniversary charges, exit charges, deadlines. · 8 min read
IHT400 Form UK: Rules, Deadlines, Penalties and FinesIHT400 rules, deadlines and fines explained: when the form is required, the s.245 IHTA 1984 late-filing penalties from £100 to £3,000, and HMRC enquiries.
Inheritance Tax Charity Exemption UKCharity exemption s.23 IHTA 1984: gifts to charity are IHT-free, and leaving 10% or more of the net estate cuts IHT from 40% to 36%. England and Wales guide.
IHT Gifts Out of Income UK: The Normal Expenditure Out of Income ExemptionRegular gifts from surplus income are exempt from IHT immediately, no seven-year wait. Here is how the s.21 IHTA 1984 exemption works.
Inheritance Tax for Business Owners UKBusiness Property Relief is not a complete answer to inheritance tax. Its limits, the qualifying conditions, and how business owners can plan around them.
Quick Succession Relief (IHT) UKQuick succession relief under s.141 IHTA 1984 reduces inheritance tax when the same estate is taxed twice within five years, on a sliding scale 100% to 20%. · 8 min read
Paying Inheritance Tax Before Probate UKYou must pay inheritance tax before you can get probate, but cannot access estate funds without it: the Direct Payment Scheme, instalments and bridging.
Pension Death Benefits and IHT UKPension death benefits have historically sat outside your estate for inheritance tax. Learn how they are taxed, who inherits them, and what changes in 2027.
Transfer of Equity and Inheritance Tax UKAdding or removing someone from your property title can trigger inheritance tax, CGT and stamp duty. Learn the reservation of benefit trap and safer options.

Self-help information only. Articles on this blog are for general informational purposes and do not constitute legal advice. WillSafe UK is not a firm of solicitors. For complex estates, blended families, business assets or foreign property, please speak to a qualified solicitor.