Inheritance Tax


Without the right advice and careful financial planning, HM Revenue & Customs can become the single largest beneficiary of your estate following your death.

At present, the first £325,000 (2016/2017) of an individual's estate is not liable to Inheritance Tax. For married couples and registered civil partners it is currently £650,000, if the full allowance is passed to the surviving spouse. Anything in excess of this amount is taxed at 40% on death.

There are some options available that you can consider to help mitigate Inheritance Tax:

  • Have your Will* written and planned correctly to save the maximum amount of tax
  • Transfer assets through the prudent use of lifetime gifts
  • Create a tax-efficient fund to enable the beneficiaries of an estate to meet the tax liability without disturbing the family wealth. Under current IHT legislation, pensions can play a considerable role in estate planning.

Use our Inheritance Tax Calculator to find out how much IHT you might be liable to.

Although pension death benefits are broadly exempt from IHT, if they are passed to your survivor they will form part of their estate. St. James's Place can offer solutions which allow your survivor access to your death benefits without them forming part of their estate.

We have a service, in conjunction with four leading law firms, which is designed to provide a wide range of differing legal services covering Inheritance Tax, matrimonial issues and general tax planning.

Download our Guide to Inheritance Tax (PDF) or request contact from a St. James's Place Partner to discuss your personal requirements in detail.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected any may fall as well as rise. You may get bak less than the amount invested.

The information on this website is based on our interpretation of the law and HMRC practice as at April 2016. Taxation legislation and HMRC practice may be subject to unforeseen changes in the future. 

*Will writing involves the referral to a service that is separate and distinct to those offered by St. James’s Place. Wills are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.