What is Inheritance Tax planning?
Links marked * are commercial or go to our partner sites, which share our operator. Third-party companies may pay us commission. How we make money.
In short: Inheritance Tax planning means arranging your affairs so your estate passes as you intend and any IHT is no more than necessary — using wills, lifetime gifts, trusts and pension reviews before the April 2027 rule change.
Content updated:
Only around 4–5% of UK deaths result in an IHT bill, but frozen nil-rate bands are pulling more estates into scope. Each person has a £325,000 nil-rate band plus up to £175,000 residence nil-rate band when a home passes to direct descendants.
Practical steps include writing a will, keeping gift records, putting life insurance in trust, and reviewing pension drawdown before unused DC pots count for IHT from April 2027.
Our IHT planning basics guide and Inheritance Tax calculator are starting points — complex estates need professional advice.
Primary source: gov.uk/inheritance-tax
Part of our Benefits & tax
This quick answer sits inside our wider benefits & tax hub — with sub-guides, calculators and step-by-step explainers on the same topic.
Read the full benefits & tax guide →