Specialist IHT Advisor in South Yorkshire
Protect your estate. Reduce unnecessary tax. Secure your family’s future.
We believe in transparent, fair pricing that reflects the value we deliver. Our fees are designed to give you
clarity from the outset and confidence in the service you receive.
Fixed fee: £285 (UK clients only)
Your first step is a detailed consultation with an experienced estate planning practitioner based in
Sheffield, South Yorkshire.
If you decide not to proceed with further planning, the £285 consultation fee is the only charge.
If we identify opportunities to reduce your inheritance tax liability and you choose to proceed,
an implementation fee will apply.
Our fee is calculated as a percentage of the estimated inheritance tax saved by implementing the
recommended planning.
Typical range: 1% – 2.5% of the tax saved
The percentage applied will depend on:
If you instruct us to implement the recommendations, the
£285 consultation fee is fully credited against the final implementation fee.
Depending on your circumstances, implementation may involve:
Before any chargeable work begins, you will receive a written engagement letter confirming:
All fees are exclusive of VAT, which will be added at the prevailing rate.
If you want to understand your inheritance tax position and explore how much tax your estate could save,
we invite you to book an initial consultation.
Consultation fee: £285
Includes a full written report and analysis.
At Matrix Estate Planning Limited, our process is designed to ensure that we meet your needs effectively and efficiently.
1. Initial Consultation
Your journey begins with an initial consultation, where we take the time to understand your financial situation, goals, and family dynamics. This allows us to tailor our advice to your specific circumstances.
2. Comprehensive Assessment
We will conduct a thorough assessment of your estate, including all assets, liabilities, and any potential tax liabilities. This assessment will form the foundation of your inheritance tax planning strategy.
3. Tailored Strategy Development
Based on our assessment, we will develop a tailored inheritance tax planning strategy that incorporates various tax-saving techniques and aligns with your aspirations. This may include the use of trusts, gifting strategies, and business succession planning.
4. Implementation
Once we have your approval, we will assist you in implementing the recommended strategies. This may involve drafting legal documents, setting up trusts, or making necessary changes to your will.
Conclusion
plan that meets your goals. Contact us today to schedule your initial consultation and take the first step toward securing your family’s financial future.
Introduction
Inheritance Tax (IHT) is a crucial aspect of estate planning that affects many individuals in the UK. Although only a minority of estates (less than 4%) are subject to IHT, it remains a significant area of concern for many families. As a director and estate planning practitioner at Matrix Estate Planning Limited, I understand the complexities and nuances of IHT planning. This article aims to provide a comprehensive overview of inheritance tax planning in the UK, discussing the legal framework, available reliefs, and strategies for effective estate planning.
Inheritance Tax is a tax on the estate of a deceased person. It applies to the total value of a person’s assets, including property, savings, and investments, minus any debts or liabilities. The standard IHT rate is 40%, which is charged on the value of the estate above the nil-rate band.
The nil-rate band is the threshold below which no IHT is payable. As of the 2023/2024 tax year, the nil-rate band is set at £325,000. This means that estates valued below this amount do not incur any inheritance tax. Importantly, the nil-rate band can be transferred between spouses or civil partners, allowing for potential tax efficiency when planning estates for couples.
In addition to the nil-rate band, the residence nil-rate band (RNRB) applies to estates that include a home or a share of a home passed to direct descendants. As of the 2023/2024 tax year, the RNRB is set at £175,000. Therefore, when both bands are combined, couples can potentially pass on up to £1 million tax-free (i.e., £325,000 + £175,000 + £325,000 + £175,000).
There are several reliefs and exemptions available that can reduce the IHT liability, including:
Effective inheritance tax planning can significantly reduce the liability and ensure that more of your estate is passed on to your loved ones. Here are some strategies to consider:
Navigating the intricacies of inheritance tax planning can be challenging, and it is essential to seek professional advice. As an estate planning practitioner, I am passionate about helping elderly vulnerable clients and their families understand their options and make informed decisions. At Matrix Estate Planning Limited, we provide tailored estate planning services that consider your unique circumstances and objectives.
Inheritance tax planning is an essential component of effective estate management. Understanding the legal framework, available reliefs, and planning strategies can empower individuals to make informed decisions about their legacy. Although less than 4% of estates in the UK pay inheritance tax, proactive planning can ensure that your loved ones receive the maximum benefit from your estate.
For tailored guidance on inheritance tax planning, please contact Matrix Estate Planning Limited. Together, we can create a comprehensive estate plan that meets your needs and protects your family’s future.
Inheritance tax (IHT) is payable on death or at certain stages during lifetime. For the purposes of this article we will look at the IHT charge payable on death which relates to the deceased’s estate. On death, the executors will calculate the value of the estate and as well as including the value of any assets i.e. property or monies in bank accounts, they are also required to account for any gifts made within 7 years of the deceased’s death.
If the value of the estate exceeds the nil rate band (NRB) and residence nil rate band (RNRB), the rate of IHT payable is 40%.
On the subject of the NRB and RNRB, each person has a NRB available to them. The current value of the NRB is £325,000 so if the estate exceeds this value, IHT will become payable unless other allowances are available. If the assets fall below the NRB however, no IHT will be payable. It is important for us to add here that the NRB can be reduced by any gifts and transfers made during lifetime.
The RNRB will only be available where a person leaves a “qualifying residential interest” to direct lineal descendants. For a property to be a qualifying residential interest it must form part of their estate at death and must have been used by the deceased as a residence at some point during their period of ownership. It cannot be applied to a property that was bought as a buy-to-let for example.
“Direct lineal descendants” includes children, grandchildren and so on down the line. It also includes spouses and civil partners of the descendants, step-children, adopted children, foster children and children the deceased was the appointed guardian of.
The current value of the RNRB is £175,000 which is capped at the value of the qualifying residential interest.
The NRB has remained at £325,000 since 2009/2010 tax year. The value of the RNRB however, was due to increase in line with inflation based on the Consumer Prices Index but earlier this year, the Chancellor announced that both the NRB and RNRB will remain as they are until April 2026.
Any gifts made to a spouse or civil partner are free from IHT due to the spousal exemption. This applies in lifetime and in death.
Example:
Fred and Wilma are married. In Fred’s Will, he gifts his entire estate to Wilma on his death. As we know, Fred and Wilma each have a NRB and RNRB. As Fred has gifted all to Wilma, his NRB and RNRB allowances are unused. However, as they are married at the time of his death, this means that when Wilma dies, her executors can apply for any of Fred’s unused allowances to be transferred to Wilma and applied against her estate. At the current rates, this gives Wilma a total allowance of £1,000,000.
*please note any unused NRB and RNRB is not transferable between unmarried couples*
Each person can make gifts of up to £250 per person during the tax year IHT free, providing another exemption has not been used on the same person.
As well as the above, each person can give away £3,000 worth of gifts each tax year without them being added to the value of the estate.
If the full £3,000 is not used it can be rolled over to the following year so the annual exemption for the following year will be £6,000. It is important to note that any unused annual exemption can only be carried forward for one year.
In order for gifts under this category to be free from IHT, the gift must be made either before or on the marriage/civil partnership. It cannot be made after the wedding. The gift must also be made on the condition that the marriage or civil partnership actually takes place.
You can make payments to assist with a relative’s living costs such as an elderly relative or a child under the age of 18 who is in full time education. These payments are free from IHT.
Gifts made to charities are exempt from IHT.
The rate of IHT can be reduced from 40% to 36% providing 10% or more of the net estate is left to charity.
Gifts made to qualifying political parties are IHT free providing the political party at the last general election had either at least two MP’s that were elected to the House of Commons or one MP was elected to the House of Commons and the members of the party received at least 150,0000 votes.
