Inheritance Tax Solutions

Diligent Management of your Inheritance

Did you know that HMRC has quoted there were inheritance tax receipts around £4.9billion in 2016/17? 

Despite the Government’s changes to allowances, inheritance tax is still a concern for many people. However, with a little forward planning, there are ways to mitigate its effects - or perhaps remove the threat completely.

In this section, we outline the main allowances and how our advice might you help take advantage of any opportunities.


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Qualifying for Exemptions

Exemptions & Allowances

Reservations of Benefit

Insuring an IHT Liability

Business Property Relief

The Seven Year Rule

In all of the above examples, however, the amount of the gift is only potentially liable to IHT. 

Officially, lifetime gifts of this nature are referred to as Potentially Exempt Transfers (PETs). This is because, if, from the date of the lifetime gift, you survived at least another seven years, the gifts would then become exempt.

However, if the giver died within that seven year limit, the gift would be added back into the value of the estate on the following sliding scale. This scale is based on number of years death occurs since and percentage of value added back in: 

  • 0-3 years – 100% 
  • 3-4 years – 80% 
  • 4-5 years – 60% 
  • 5-6 years – 40% 
  • 6-7 years – 20% 
  • 7 years +  – Zero 

Assuming you can afford to run your life in the way you wish, therefore, giving away money or possessions during your lifetime is a valid way of reducing the eventual inheritance tax liability for your beneficiaries. 

The Financial Conduct Authority does not regulate taxation and trust advice.

The information is based on our understanding of current HMRC tax rules applying for tax year 2023/24 which may be subject to future change. 

All information on this website is for information purposes only and should not be interpreted as providing individual financial advice. It is important you understand the full benefits and risks of potential decisions as they relate to your individual circumstances and you should seek professional, regulated financial advice before embarking on any course of action.

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A&J Wealth Management Ltd


Bigfrith Lane

Cookham Dean



01628 480200

© 2024 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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