Quiz

How exposed is your estate to inheritance tax?

A quick assessment to understand your potential inheritance tax exposure based on your current estate situation.

Frequently asked questions

How accurate is this IHT exposure assessment?

This is a general information tool that provides an indicative assessment based on the information you provide. Actual inheritance tax exposure depends on many factors including reliefs, exemptions, current legislation, and individual circumstances. For accurate assessment and planning, professional advice tailored to your situation is essential.

What does a high exposure score mean?

A high exposure score suggests that your estate may be subject to significant inheritance tax without planning. This indicates that professional advice and structured planning strategies may be particularly valuable. Early planning typically provides more options and greater tax efficiency.

Can I reduce my IHT exposure through planning?

Yes, there are various legitimate planning strategies available, including trusts, gifting, business relief, and other structures. The effectiveness depends on your circumstances, timing, and the specific assets involved. Professional advice can help identify the most suitable approaches for your situation.

What if I already have some planning in place?

The assessment accounts for existing planning measures you indicate. However, a professional review can help ensure your planning remains effective, is aligned with current legislation, and addresses all relevant aspects of your estate. Regular reviews are recommended as circumstances change.

When should I seek professional IHT planning advice?

Professional advice is recommended if your estate value exceeds nil-rate band thresholds, you have complex assets such as businesses or agricultural property, or you want to ensure your planning is comprehensive and tax-efficient. Early consultation typically provides more options.

How does property ownership affect IHT exposure?

UK residential property is typically included in your estate for IHT purposes. The residence nil-rate band can provide additional relief when passing property to direct descendants, but this is subject to specific conditions. Professional advice can help you understand how property ownership affects your position.

What happens if I've already used my nil-rate band?

If you've already used your nil-rate band, additional estate value above the threshold is typically subject to IHT at 40%. However, there may still be planning opportunities available, including business relief, agricultural relief, and other strategies. Professional advice can help identify options.

Can business assets reduce my IHT exposure?

Yes, qualifying business assets may be eligible for business relief, which can provide 50% or 100% relief from inheritance tax. However, this requires careful planning and compliance with HMRC rules. Professional advice is essential to ensure eligibility and maximise relief.

What happens next

  • Review your assessment results and consider the implications for your estate planning
  • If your exposure is moderate or high, professional advice is recommended to explore planning strategies
  • Consider booking a consultation to discuss your specific circumstances and planning options
  • Explore our inheritance tax solutions service for tailored guidance
  • Regular reviews help ensure your planning remains effective as circumstances change

Related service

For personalised advice tailored to your circumstances, explore our Inheritance Tax Planning service.

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For UK consumers only. Information is general and not personal advice. We may work with regulated advisers where required.