Ensure your loved ones receive as much of your hard earned estate as possible by mitigating any potential inheritance tax liability.  Contact us today to arrange a meeting to discuss your personal situation and the options available to you.


Some IHT Facts:


  • Inheritance tax (IHT) is a tax payable on the worldwide assets of any UK domiciled individual upon their death.
  • IHT is chargeable at three rates:

-     0% up to the nil rate band (which is currently £325,000, 2010/11 tax year, although this can be increased to a maximum of £650,000 if your spouse/civil partner died without using their nil rate band)

-     20% on Chargeable Lifetime Transfers

-     40% on death

  • For most individuals Inheritance Tax is payable at a rate of 40% of the value of their total estate less the ‘nil rate band' of £325,000 in the 20010/11 tax year.
  • For example, assuming the £325,000 nil rate band applies to you:

-     if your estate is worth £500,000 HMRC will receive £70,000 in Inheritance Tax

-     if your estate is worth £1,000,000 HMRC will receive £270,000 in Inheritance Tax

  • If the value of your family home exceeds the nil rate band, without careful planning, your children or other beneficiaries might have to sell the home to pay the IHT bill.   
  • From April 2009 to March 2010 the government collected approximately £2.4 billion in inheritance tax receipts.

IHT can apply to everyone, not just the wealthy, and due to the combination of the freeze on the nil rate band and inflation more and more people will fall liable.

However, the good news is that, unlike many other taxes, you have a range of options.   We can discuss the use of the following tools to mitigate your potential liability.

Trusts            The use of trusts can be very effective in mitigating any Inheritance Tax liability. HENRIJAMES Wealth can advise you on whether a trust should be created during your lifetime or upon death under the terms of a Will.

Pensions       Death benefits on most pension plans are exempt from IHT, however when you come to take income from your pension careful consideration needs to be taken as each method has different tax consequences. HENRI JAMES Wealth will advise you on the most tax efficient way to take your pension.

Gifts              Certain "gifts" made during your lifetime are exempt from Inheritance Tax. We will advise you on the various thresholds and criteria that must be met. For example, for a gift to be considered exempt the donor must not retain an interest in it.

Life Insurance Insure your Inheritance Tax liability using a Protection policy which pays out on your death.

Offshore         The use of offshore bonds gives you more control over when you pay tax.

Wills              Keeping your Will up-to-date allows you to choose how your estate is divided between your beneficiaries.

Do not hesitate in seeking advice to ensure that the person analysing your tax liability is us and not the taxman.


Henri James Wealth is a trading style of Sarah Stallard. Sarah Stallard is an appointed representative of Sage Financial Services Ltd, which is authorised and regulated by the Financial Services Authority. Sage Financial Services Ltd is entered on the FSA register ( under reference 150452. The information and content of this website is intended for UK consumers only and is subject to the UK regulatory regime. The FSA do not regulate some forms of tax planning advice. Henri James Wealth Principal - Sarah Stallard