What You Need to Know About Inheritance Tax – Before It’s Too Late

Nobody loves talking about inheritance tax or what happens to their money when they’re gone - but a little planning now can make a big difference for your family later.

Whether you're thinking about passing on your business, your home, or just making sure your kids or grandkids get the most from what you’ve built, generation and estate planning is all about being smart, not morbid.

Why It Matters

Without a plan, your estate could face a 40% inheritance tax bill on any assets in excess of the £325,000 threshold (rising to £500,000 if you’re passing on the family home to children or grandchildren). That means your loved ones could lose a big chunk of what you hoped to leave behind for their futures.

What You Can Do

There are lots of great ways to reduce your inheritance tax bill, including:

• Gifts - You can give away a certain amount each year tax-free - great if you want to help family out now. This becomes even more useful when family members are getting married.

• Trusts - Useful for passing on assets while keeping some control, especially when younger family members are involved.

• Pensions - Money left in your pension can sometimes be passed on tax-free, although the rules are changing from April 2027.

• Business Relief - If you own a trading business, some of its value might be exempt from inheritance tax - but the rules are strict, so advice is key.

• Life policies - these can cover potential inheritance tax liabilities.

The rules are changing - now is the perfect time to get an IHT review

Estate planning isn’t just for the ultra-wealthy or those nearing retirement - it’s worth thinking about early, especially if you own property, have a business, or want to help the next generation get a head start.

At Reach, we work closely with individuals and families to create practical, tax-efficient plans that reflect their wishes and protect their legacy. Whether it’s passing on businesses, helping children onto the property ladder, or just making sure HMRC doesn’t take more than its fair share, we are here to guide you every step of the way.

Ready to start the conversation? Let’s chat - future you (and your family) will be glad you did.

Disclaimer: This article is for general information purposes only and reflects the law and guidance at the time of writing. It does not constitute professional advice. Please consult a qualified advisor before making financial or tax-related decisions.