Inheritance Tax Planning

Diligent Management of your Investment Portfolio

The diligent management of your Investment Portfolio is essential whether your objectives are to achieve long term capital growth or a regular income, irrespective of whether you wish to adopt a low, medium or high risk approach.


We are able to give advice on Stocks & Shares ISAs, General Investment Accounts and Onshore & Offshore Bonds, as well as less accessible investments such as Venture Capital Trusts (VCTs), Enterprise Investment Schemes (EIS) and Business Property Relief.


The majority of our clients will have a minimum portfolio of £100,000.

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We have consolidated some of this information into factsheets for your reference and information, please click Find Out More.

Strategies for Mitigating Inheritance Tax

Pensions are not subject to inheritance tax when you die. If you die before the age of 75, the individuals who inherit your pension post can freely draw on the money. This pot of money is also exempt from income tax.

If you are 75 or over when you die, a beneficiary of your pension will have to pay income tax at the marginal rate on any withdrawals.

Each tax year, you can also give away some money or possessions free of Inheritance Tax.

You can give away a total of £3,000 worth of gifts each tax year without them being added to the value of your estate. This is known as your ‘Annual Exemption’.

You can carry any unused annual exemption forward to the next year year – but only for one tax year.

Small Gift Allowance – You can give as many gifts of up to £250 per person as you want each tax year, as long as you have not used another allowance on the same person.

Birthday or Christmas gifts you give from your regular income are exempt from Inheritance Tax.

Each tax year, you can give a tax free gift to someone who is getting married or starting a civil partnership.

You can give up to:

  • £5,000 to a child
  • £2,500 to a grandchild or great-grandchild
  • £1,000 to any other person

If you’re giving fits to the same person, you can combine a wedding gift allowance with any other allowance, except for the small gift allowance.

For example, you can give your child a wedding gift of £5,000 as well as £3,000 using your annual exemption in the same tax year.

You can leave some money to charity or an organisation providing a national benefit such as the National Trust and if over 10% of your estate is left to charity, your overall inheritance tax will be reduced from 40% to 36%.

These give individuals the potential to immediately reduce the value of their estate for IHT purposes. It allows the donor to make a gift and retain the right, in the form of regular payments, to some of that gift.

Making large gifts to beneficiaries (Potentially Exempt Transfers or PETs) requires the donor to live for 7 years (at least 3 before tapering of 40% IHT starts taking effect), but if you are fit and healthy and happy to relinquish control of certain assets this can be a simple way to go.

This would be the most common form of inheritance tax mitigation but it requires underwriting and is often prohibitively expensive if people consider doing it.

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A&J Wealth Management Ltd


Bigfrith Lane

Cookham Dean



01628 480200

© 2023 A&J WEALTH MANAGEMENT LTD A&J Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority. Financial Services Register, no 428590, at Registered in England, Company no: 5105933. Registered Head Office: Sawfords, Bigfrith Lane, Cookham Dean, Maidenhead, Berkshire SL6 9PH

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