Inheritance tax planning solicitors in Leicester

Inheritance tax is charged at 40% on the part of an estate above the available allowances, with some exemptions and reliefs. Good planning is mostly about using the allowances you already have properly and making decisions early.

The main allowances and exemptions

• Nil-rate band: the first slice of every estate is taxed at 0%.
• Residence nil-rate band: an extra allowance where your home, or the proceeds of it, passes to direct descendants. It reduces for estates above a threshold.
• Spouse and civil partner exemption: gifts between spouses are usually exempt, and unused allowances can be transferred to the survivor.
• Charity exemption: gifts to charity are exempt, and leaving at least 10% of the net estate to charity can reduce the rate on the rest.
• Business and agricultural relief: reduce the value of qualifying business and farm assets. These reliefs were restricted from April 2026, so business owners and farmers should review their plans.

Planning steps

1. Make a will that uses both spouses’ allowances efficiently and doesn’t waste the residence nil-rate band.
2. Gifts during your lifetime, using the annual exemptions, regular gifts out of income, and larger gifts that fall out of charge after seven years.
3. Trusts, which can give control over how assets are used while moving value out of your estate, though they have their own tax rules.
4. Life insurance written in trust to pay the expected tax bill.
5. Pensions and business assets, given the recent and announced changes.

Who to talk to

Inheritance tax planning sits between law, tax and investment. A solicitor deals with wills, trusts and gifts, a financial adviser with investments and insurance, and an accountant with the tax calculations. Rules change regularly, so plans made even a few years ago are worth a review. See GOV.UK: inheritance tax for current figures.

Common questions