Inheritance Tax Planning

Inheritance Tax (IHT) can have a significant impact on the value of the estate you leave behind. It is a subject many put off but is one that cannot be ignored.

Thresholds that allow you to pass on wealth tax-free – the nil-rate band and the residence nil-rate band will remain frozen at £325,000 and £175,000 respectively until at least April 2031, according to recent government announcements (Nov 2025).

Alongside the decision to include certain unused pension funds within the Inheritance Tax calculation from April 2027, not increasing these bands to account for rising property values and inflation, many estates that might once have fallen below the tax threshold could now be liable for IHT – reinforcing the importance of careful planning.

At Active Chartered Financial Planners, we work with clients across Teesside, North Yorkshire, County Durham and the wider North East. We provide clear, independent financial advice to help you understand your options and make informed decisions. Every recommendation is tailored to your circumstances, personal goals, and family priorities.

What is Inheritance Tax?

Inheritance Tax is a tax on your estate when you die. This includes property, savings, investments and other assets. Current thresholds and allowances may change over time, but the way your estate is structured often makes a meaningful difference to how much tax could be due.

We help you to understand where you stand today – and how planning ahead may give your family greater financial security tomorrow.

How we help

A personalised approach to managing your estate

There is no one-size-fits-all solution for Inheritance Tax planning. We take time to understand your full financial picture, including:

• Your assets and liabilities
• Your family structure and beneficiaries
• Your goals for passing on wealth
• Your preferences around control, access and flexibility
• Any business or property interests

From here, we create a clear, tailored plan to help you manage potential tax liabilities in a way that suits your needs.

Key areas of Inheritance Tax planning

Using Allowances and Exemptions

We help you make the most of allowances that may be available to you, such as the nil-rate band, residence nil-rate band, and gifting exemptions. These may help reduce the potential tax payable on your estate.

Gifting Strategies

Gifting can be a powerful way to pass on wealth during your lifetime. We guide you through the rules, timescales and potential implications so you can gift with confidence – without compromising your own financial security.

Trust Planning

Trusts can offer structure, control and protection when passing on money. They may also provide tax advantages depending on how they are set up.
We explain the options in clear terms so you can decide whether trusts are appropriate for you.

Planning with Pensions

Pensions can be a highly efficient way to pass on wealth, depending on your circumstances and rules. Generally, pension assets are currently outside of an individual’s estate, however as announced in the Autumn 2024 Budget, unused pension funds on an individual’s death after 5 April 2027 will be treated as part of the deceased’s estate for inheritance tax purposes.

We help you to understand how your pension could fit into your inheritance plan, including potential tax treatment on death and how your beneficiaries may access funds.

Insurance & Protection

In some cases, life insurance written in trust can help cover a potential Inheritance Tax liability. This may provide beneficiaries with funds to meet the tax bill without affecting the estate itself. We will walk you through the pros, cons and costs so you understand whether protection is suitable.

Business & Property Considerations

For business owners or those with agricultural or commercial property, additional reliefs may apply. Our financial advisers can help you explore whether Business Relief or other allowances could reduce the taxable value of your estate.

Why clients choose Active Chartered Financial Planners for Inheritance Tax planning

Clear, independent advice

As an independent, Chartered firm, we offer a comprehensive view of the market and provide recommendations based solely on what is right for you.

Calm, reassuring guidance

IHT planning can feel like a complex area. We take time to listen, understand your priorities and support you in making informed decisions at your own pace.

Specialist expertise

Our highly qualified, experienced advisers stay fully up to date with legislation, ensuring your plan reflects current rules and your long-term goals.

A long-term partnership

Inheritance Tax planning is not a one-off exercise. We review your arrangements regularly to help keep your plan effective as your life, assets and tax rules change.

Is Inheritance Tax planning right for you?

If you own property, have savings and investments, or wish to pass wealth to children or grandchildren, IHT planning may be beneficial. Even simple steps taken early can make a meaningful difference for those you leave behind.

The Financial Conduct Authority does not regulate taxation and Trust advice