Inheritance Tax basics (without the headache)
We keep this simple. There are allowances, rules for the family home, and gifting rules. Use them wisely and you often keep more in the family.
Core allowances (the starting point)
There’s a standard nil-rate band and, if you leave a qualifying home to direct descendants, a residence nil-rate band may apply. Thresholds change over time—we’ll confirm the latest HMRC figures when we speak.
The family home (why it matters)
How you leave your home can affect allowances. Some families use life-interest or discretionary trusts to balance protection with flexibility.
Gifting (what helps and what doesn’t)
- Small gifts and certain regular gifts from income can be immediately outside the estate.
- Larger gifts may take time to “fall outside”. Timing and records matter.
Simple, sensible steps
- Make (and keep) a valid Will.
- Consider LPAs so finances can be managed smoothly if needed.
- Review beneficiary nominations and whether policies should sit in trust.
- Keep notes—future you (and your executors) will thank you.
Note: This is general information, not personal tax advice.
Want a calm, Sheffield-based walkthrough? Book a free consultation.
FAQ
Will a trust always save tax? Not always—trusts are tools, not magic.
Do I need advice if I’m below allowances? A short chat can still prevent admin headaches.
How often should I review things? Every few years or after big life changes.
