It is a popular misconception that only the very wealthy will have an exposure to Inheritance Tax (IHT). Increasingly, more and more families are finding that their estates are over the IHT threshold and liable to the hefty 40% tax.

This misconception means that IHT is frequently misunderstood or ignored. Our nationwide consumer study revealed that 52% of over-55s do not know what their IHT liability is.[1] Indeed, 31% of over-55s revealed they have never even checked the rules on IHT and how it applies to them personally.[2]

IHT receipts have increased substantially over the last decade and hit £5.2 billion for the last tax year (2019/20).[3] This trend is set to continue with the Chancellor announcing a freeze to the tax-free allowances. Both the Nil Rate Band (NRB) and Residence Nil Rate Band (RNRB) are fixed at £325,000 and £175,000 respectively until April 2026, these had both been expected to rise in line with inflation from 6 April 2021.

The freezing of these allowances may push some clients’ estates over the threshold and into paying IHT, particularly considering rising house prices and investment growth.

IHT is often called the “voluntary” tax as, with careful planning, there are many simple and legitimate ways to reduce an exposure to this tax. This is a growing area of planning and our adviser research revealed that 72% of financial advisers expect to see a rise in the number of retail investors looking for help with IHT planning, with 26% expecting a dramatic increase.[4]


We offer a range of resources and support to help open up conversations with clients around estate planning, particularly how clients can take steps to reduce their IHT liability.


Client friendly IHT guide

Clients can often be reluctant to talk about their own mortality and it can be difficult to open up discussions around estate planning. That is why we created a simple IHT planning guide, specifically designed for clients to take home and share with their families.

The guide breaks down what IHT is and how it is calculated, including the nuances around unmarried couples and how the NRB/RNRB work. The guide also covers some simple planning ideas to reduce an exposure to IHT, including life insurance, trusts, equity release, and Business Relief. The guide can be used to open up difficult conversations and ensure that multiple generations across the family feel involved in the conversation.

To request a copy of our IHT guide, please click here.


IHT liability calculator

We offer a simple online calculator to help you forecast your clients’ potential future IHT liabilities. You can input the current values and projected growth rates of property, investments, and cash. You can then select the available NRB/RNRB allowances, which have been updated to reflect the freeze.

The calculator also helps you illustrate the potential tax savings that thoughtful planning can make on reducing an IHT liability, for example a Business Relief qualifying investment.

You can access our calculator and try it for yourself at



FT Adviser



[1] Consumer research conducted by Consumer Intelligence among 1019 individuals, 19-21 February 2021.

[2] Consumer research conducted by Consumer Intelligence among 1019 individuals, 19-21 February 2021.

[3] Table 12.1 Inheritance tax: analysis of receipts’, HMRC, July 2020

[4] Adviser research conducted by PureProfile among 50 UK-based professional financial advisers and wealth managers during February 2021.


Important Information

For professional advisers only. TIME Investments is a trading name of Alpha Real Property Investment Advisers LLP and is authorised and regulated by the Financial Conduct Authority. The levels and bases of, and reliefs from, taxation may change in the future. Any favourable tax treatment, such as Business Relief, is subject to government legislation and as such may change. The information contained in this article does not constitute and should not be construed as constituting investment or any other advice by TIME.

Posted: 20/04/2021 Categories: Inheritance Tax, News, Press, TIME:Advance, TIME:AIM, TIME:CTC

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TIME does not accept direct investment. If you wish to invest in one of our solutions you will need to take advice from an authorised financial adviser. Nothing within this website is intended to constitute investment, tax or legal advice. Our solutions place your capital at risk and you may not get back the full amount invested. Tax treatment may be subject to change and depends on the individual circumstances of each investor. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status. Neither past performance or forecasts are reliable indicators of future results and should not be relied upon. Unquoted or smaller company shares are likely to have higher volatility and liquidity risks than other types of shares quoted on the Main Market of the London Stock Exchange.