The Financial Conduct Authority does not regulate advice on Estate Planning or Inheritance Tax Planning.
The standard Inheritance Tax nil-rate band is £325,000 for 2026/27. An additional residence nil-rate band of up to £175,000 may apply when a qualifying home is left to direct descendants, giving a combined threshold of up to £500,000 for an individual. Eligibility conditions apply, and the residence nil-rate band is reduced for estates worth more than £2 million.
Certain lifetime gifts can be made without giving rise to an Inheritance Tax charge. The annual gift exemption is £3,000 for 2026/27, shared across the gifts you make in the tax year.
Unused annual gift exemption can be carried forward for one tax year only. You must use the current tax year’s exemption first, before using any unused exemption from the previous tax year.
Unlimited gifts can also be made in the form of Potentially Exempt Transfers (PETs). Provided you live for 7 years after making the gift, it will be free of inheritance tax.
Please ensure that, should a gift be made by cheque, sufficient time is given for the cheque to clear before 5th April; otherwise it will not be included in the current year’s total.
Gifts of £250 can be made to any number of separate individuals without giving rise to an inheritance tax charge. Gifts of varying amounts can also be made between family members on the occasion of a wedding/civil partnership ceremony, without any inheritance tax liability.
Tax advice which contains no investment element is not regulated by the Financial Conduct Authority (FCA).
Information regarding taxation levels and basis of reliefs are dependent on current legislation and individual circumstances, are not guaranteed and may be subject to change.