Inheritance Tax Accountants London
Clear guidance on Inheritance Tax planning, estate valuations, gifts, reliefs and HMRC reporting for families, executors and business owners.
ATA helps you organise the figures, assess the tax implications and prepare the information needed for an informed estate or succession decision. Specialist legal advice may be required for wills and trusts.
How Our Inheritance Tax Accountants London Service Helps
Inheritance Tax (IHT) can arise when someone dies or, in some cases, when assets are transferred during their lifetime. The outcome depends on the estate’s value, debts, earlier gifts, reliefs, residence and other circumstances—not simply the value of the family home.
Estate valuation & IHT400
Bring together bank balances, property valuations, investments, liabilities, lifetime gifts and supporting schedules for estate reporting.
Lifetime gifts & the seven-year rule
Review potentially exempt transfers, available gifting exemptions and gifts where the donor continues to benefit.
Property & family home
Consider the residence nil-rate band, transfers between spouses or civil partners, and the effect of larger estates.
Business & Agricultural Relief
Review the nature of qualifying business and agricultural property, ownership and the relief limits effective from April 2026.
Trust and succession coordination
Support tax information and calculations where a solicitor or qualified trust specialist is advising on the legal structure.
Business owners & shareholders
Consider trading company interests, investment assets, shareholder succession and valuation requirements.
Inheritance Tax Thresholds and Reliefs for 2026/27
The standard nil-rate band is £325,000. An additional residence nil-rate band of up to £175,000 may be available when a qualifying home passes to direct descendants. This additional band is tapered for estates above £2 million.
Unused allowances may be transferable between spouses or civil partners. In suitable circumstances, this can produce combined bands of up to £1 million on the second death, but it is not automatic in every estate.
A single person with a £600,000 taxable estate, only the £325,000 nil-rate band available, and no relevant reliefs would have a £275,000 taxable balance. At 40%, the illustrative IHT is £110,000.
What needs checking?
- Value of property and jointly owned assets
- Debts, funeral expenses and lifetime gifts
- Spouse/civil partner and charity exemptions
- Availability of residence nil-rate band
- Business and agricultural property relief
- Overseas assets and residence-based IHT rules
Actual tax depends on the full facts, including lifetime transfers and asset eligibility.
Business Relief and Agricultural Relief: the New £2.5m Allowance
For deaths on or after 6 April 2026, the combined value of qualifying business and agricultural property eligible for 100% relief is generally limited to £2.5 million per person. Qualifying value above that amount generally receives 50% relief. An unused allowance may transfer to a surviving spouse or civil partner. Different rules can apply to certain shares and trusts.
This is particularly relevant where an estate holds a trading company, family business or farmland. Investment properties do not automatically qualify for Business Relief. The exact business activities and ownership position matter.
Inheritance Tax Returns: What Happens After a Death?
- Identify the estate. Gather assets, liabilities, property valuations and earlier gifts.
- Check reliefs and exemptions. Review thresholds, spouse relief and any business or agricultural assets.
- Prepare reporting schedules. Where full reporting is required, complete IHT400 and the relevant supporting schedules.
- Coordinate tax and probate. Confirm the reporting and payment timetable, and involve the estate solicitor where necessary.
Be aware of the deadlines
Where an IHT400 is required, HMRC generally requires it within 12 months of death and before applying for probate, if needed. IHT is normally due by the end of the sixth month after the month of death; interest may arise on late payment.
Not every estate needs a full IHT400. The appropriate process depends on the estate.
HMRC estate reporting guidance ↗Inheritance Tax FAQs
Does everyone pay Inheritance Tax when they die?
No. Many estates are below the available thresholds or qualify for exemptions. Estate reporting may still be necessary even if no IHT is due.
Can I give my house to my children to avoid IHT?
Gifting a home can raise IHT and Capital Gains Tax issues. A gift where you continue to benefit from the property may remain relevant to your estate. Seek tailored advice before transferring ownership.
Does the seven-year rule mean a £325,000 allowance renews every seven years?
No. The nil-rate band is not simply a fresh £325,000 allowance for gifts every seven years. The treatment of gifts depends on their dates, the available exemptions, their ordering and whether death occurs within seven years.
Do shares in a limited company qualify for Business Relief?
Some trading business interests and shares may qualify, subject to conditions and the April 2026 limits. Investment-focused businesses and certain asset holdings may not qualify.
Can ATA prepare an IHT400 return?
ATA can assist with gathering estate accounting information, tax calculations and IHT schedules, subject to reviewing the estate and agreeing the scope. Probate and legal trust drafting are separate legal services.
What about assets outside the UK?
The IHT position for overseas assets depends on the individual’s circumstances and the applicable long-term UK residence rules. Cross-border estates may need specialist advice.
Is Inheritance Tax planning the same as Capital Gains Tax planning?
No. Transferring assets may reduce exposure to one tax while creating a different tax consequence. IHT, CGT, stamp taxes and legal ownership should be considered together.
Inheritance Tax and Related Tax Services
Inheritance Tax planning is often connected to property, business ownership, lifetime disposals and family finances. These ATA pages provide related information:
Capital Gains Tax
Consider potential CGT consequences of gifts, property transfers and disposals.
CGT Services →Property & Landlords
Understand property accounting and the tax information needed for asset reviews.
Property Accountants →Official Inheritance Tax Resources
Speak to ATA About Estate Tax and IHT Reporting
Tell us whether you are planning ahead, reviewing gifts or business assets, or dealing with an estate. We’ll discuss the records needed and the appropriate scope of support.
ATA provides tax and accounting support. Legal advice on wills, trusts and probate is outside this page’s scope and may require a solicitor.