Is it too late to start planning? I don't know how much longer I've got in me
These are important questions, and getting them wrong can have lasting implications for your family.
Understanding inheritance tax and why it’s often left too late
Inheritance tax is one of the most commonly misunderstood areas of financial planning. Many people assume it only affects the very wealthy, or that it is something their family will “deal with later”. In reality, rising property values and frozen thresholds mean inheritance tax is now a concern for far more families than ever before.
For others, the challenge is not knowing where to start. The rules can feel complex, the terminology unfamiliar, and the consequences significant. As a result, decisions are often delayed, sometimes until options become limited.
At Henley & Co, we help bring structure and reassurance to inheritance tax planning, so you can make informed decisions at a pace that feels right for you.
Common questions we hear:
Does my main home count towards inheritance tax?
Will my estate be subject to inheritance tax?
Can I reduce inheritance tax without giving away control?
Can't I just give away my property to the children?
How do pensions, property, and investments fit into the picture?
Start the conversation
Inheritance tax planning doesn’t have to be complicated, but it does need to be considered early and reviewed regularly. Whether you’re looking to reduce a potential inheritance tax bill, protect family wealth, or simply understand where you stand, a conversation can make a meaningful difference.
We offer a confidential, no-pressure initial meeting to help you:
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Understand your current inheritance tax position
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Identify opportunities to improve efficiency and control
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Decide whether formal inheritance tax planning is right for you
Book an initial consultation and take the first step towards protecting what you’ve built, for the people who matter most.
Key inheritance tax thresholds and allowances
Effective estate planning starts with understanding the key thresholds that determine whether inheritance tax applies and how much your estate may be exposed to.
Nil-rate band
Every individual has a tax-free inheritance allowance of £325,000, known as the nil-rate band. Inheritance tax is only applied to the value of an estate above this threshold. The nil-rate band is currently frozen until 2030.
Married couples and civil partners
Assets passed to a spouse or civil partner are usually free from inheritance tax. In addition, any unused nil-rate band can be transferred to the surviving partner, potentially increasing their total tax-free allowance to £650,000.
Residence nil-rate band
An additional allowance of up to £175,000 may be available when a main residence (or an equivalent value from the estate) is passed to children or grandchildren. When combined with the nil-rate band, this can increase the total tax-free allowance to £500,000 per person.
It is important to note that the residence nil-rate band is tapered for estates valued over £2 million. For every £2 above this threshold, £1 of the allowance is lost. If the property value is less than £175,000, the relief is capped accordingly. Any unused residence nil-rate band can usually be transferred to a surviving spouse or civil partner.
How we can help reduce inheritance tax
Understanding inheritance tax is one thing, planning around it effectively is another. At Henley & Co, we help you take a structured, practical approach to estate planning, ensuring your wealth is passed on in the most tax-efficient way possible.
Our process can be broken down into 4 simple steps:
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We start by reviewing the full value of your estate, how assets are owned, and who you want to benefit. This includes property, savings, investments, pensions, and any existing trusts or arrangements.
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We assess which allowances, exemptions, and reliefs apply to your circumstances, and highlight opportunities to reduce potential inheritance tax, both now and in the future.
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Where appropriate, we help you consider options such as gifting strategies, trust planning, income strategies and life assurance written in trust to support your objectives.
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Estate planning isn’t a one-off exercise. We regularly review your plan to reflect changes in legislation, asset values, and family circumstances, working alongside solicitors and accountants where needed.
Why Henley & Co?
Inheritance tax planning requires careful thought, technical understanding and a clear view of what you want your wealth to achieve. At Henley & Co Wealth Management, we focus on thoughtful, long-term planning, not quick fixes.
What sets us apart:
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Planning-led, not product-led
We start with your goals, family circumstances and estate structure, not with solutions. This ensures any recommendations are relevant, appropriate, and aligned with your intentions.
Clear, practical advice
Inheritance tax can feel complex and overwhelming. We explain your options in plain English, helping you make informed decisions with confidence.
Joined-up estate planning
We consider your entire financial picture, including pensions, investments, property, and business assets, and work closely with solicitors and accountants where specialist input is required.
Proactive and ongoing support
Tax rules change, asset values fluctuate, and family circumstances evolve. We regularly review your plans to ensure they remain effective and up to date.
Trusted, long-term relationships
Many of our clients work with us across multiple generations. Our focus is on building lasting relationships based on trust, transparency, and care.
Frequently asked questions about inheritance tax and estate planning
Many people are surprised to discover that they do. Rising property values and long-term investment growth mean inheritance tax now affects far more families than expected. If your estate including property, savings, pensions and investments could exceed available allowances, there may be steps worth considering. A simple review can help establish whether inheritance tax is likely to be an issue and, if so, what options are available to you.
Get in Touch
If you’d like to talk through your plans or have questions about your financial position, we’d be happy to help. Get in touch to arrange an initial conversation.