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Inheritance tax accountant

Inheritance Tax can affect the wealth, property and business interests you intend to leave behind. It can also create difficult responsibilities for executors who must value an estate, understand the available allowances and submit accurate information to HM Revenue and Customs.

Asmat & Co Accountants provides clear, practical support for individuals, families, trustees, executors and business owners. We help you understand the potential tax position, organise the necessary financial information and make informed decisions based on current UK tax rules.

Whether you are planning ahead or dealing with an estate following a death, you receive advice that is based on the actual assets, liabilities, gifts and family circumstances involved.

Understand your inheritance tax position before decisions are made

Inheritance Tax planning is most useful when it starts early. Once assets have been transferred, a business has been sold or an estate owner has died, some planning opportunities may no longer be available.

We begin by reviewing what the estate includes and who is expected to inherit it. This may involve:

This gives you a more realistic picture of the estate rather than relying on a rough property value or an outdated estimate.

An inheritance tax accountant reviewing UK estate records with a client

How inheritance tax currently works

The standard nil-rate band is £325,000. In general, Inheritance Tax is charged at 40% on the taxable part of an estate above the available thresholds after exemptions and reliefs have been considered.

An additional residence nil-rate band of up to £175,000 may be available when a qualifying home is passed to direct descendants. This can potentially increase an individual’s total available threshold to £500,000.

Unused nil-rate bands may also be transferred between spouses or civil partners. Subject to the qualifying conditions, a married couple or civil partners may therefore be able to pass on an estate of up to £1 million without an Inheritance Tax liability.

These figures should not be treated as automatic allowances. The amount available can be affected by matters such as:

We calculate the available allowances using the relevant information rather than assuming the maximum threshold applies.

Who we can help

Our inheritance tax support can be useful in several different situations.

Individuals and families planning ahead

You may have accumulated property, investments, savings or business assets over many years but have no clear estimate of the tax that could arise.

We can help you understand the current position, identify information that is missing and consider legitimate planning options before making irreversible decisions.

Executors and personal representatives

Acting as an executor can involve more than collecting bank balances and distributing an inheritance. You may need to establish the estate’s value, investigate previous gifts, identify liabilities, calculate tax and provide information to HMRC.

We help organise the financial side of the estate so that figures are supported by appropriate records and assumptions are clearly explained.

Business owners

An estate containing a trading business, partnership interest or private company shares can be significantly more complicated than an estate made up of cash and a home.

Our business tax planning support can connect succession planning with the owner’s wider personal tax position. Where a sale, restructure or transfer is being considered, our corporate advisory services can help you review the commercial and financial implications.

Landlords and property investors

A property portfolio can produce a substantial Inheritance Tax exposure, particularly where values have increased over time but cash remains limited.

Our landlord accountants can help establish reliable property figures, rental records, ownership details and related liabilities as part of the wider estate review.

Trustees

Trusts have their own reporting, valuation and tax requirements. Depending on the type of trust, Inheritance Tax may arise when assets enter the trust, at 10-year anniversaries or when assets leave it.

We can review the trust’s accounts and tax records, identify upcoming responsibilities and work alongside the trustees’ legal advisers where necessary.

What our inheritance tax service can include

The support you need will depend on whether you are planning during your lifetime or administering an estate after a death.

Estate value and exposure calculation

We prepare an initial calculation using the assets, liabilities, exemptions and reliefs that may apply. This helps you see whether there is a likely liability and which parts of the estate require closer attention.

The calculation may include:

Where a formal valuation is required, we can coordinate with an appropriately qualified property valuer, surveyor or business valuation specialist.

Lifetime gift review

Giving assets away can form part of a genuine estate plan, but a gift does not automatically remove an asset from the estate.

We can help you review:

A clear gift register can make the executor’s work considerably easier. It should normally show what was given, who received it, the date and the value at that time.

The 7-year rule

Some lifetime gifts may fall outside the estate when the person making the gift survives for at least 7 years. However, the tax treatment depends on the type of gift, its value, earlier transfers and whether any benefit was retained.

Taper relief does not simply reduce the value of every gift after 3 years. It can reduce the tax charged on qualifying gifts made between 3 and 7 years before death, but only where the relevant taxable gifts exceed the available nil-rate band.

We help you understand the order in which gifts use the nil-rate band and whether an exemption or relief may apply.

Spouse and civil partner exemptions

Assets passing to a spouse or civil partner are generally exempt from Inheritance Tax, subject to the relevant conditions.

We can also review whether unused nil-rate band or residence nil-rate band from an earlier death may be transferred to the surviving spouse or civil partner’s estate. Evidence from the first estate may be needed to support the claim.

Residence nil-rate band

The residence nil-rate band can provide an additional allowance where a qualifying residential interest is inherited by direct descendants.

Eligibility can become more complicated where:

We review the ownership, estate value, beneficiaries and previous property history before including this allowance in a calculation.

Business and agricultural reliefs

Qualifying business and agricultural assets may receive Inheritance Tax relief. For deaths on or after 6 April 2026, the 100% rate of relief is generally limited to a combined allowance of £2.5 million for qualifying agricultural and business property, with 50% relief potentially applying above that amount.

Relief is not available merely because an asset is connected to a company, farm or family business. The nature of the activity, ownership period, asset use and business structure must be considered.

We review the available accounting and ownership information and coordinate with specialist advisers where the circumstances require more detailed advice.

Charitable giving

Leaving part of an estate to charity can reduce the taxable estate. Where at least 10% of the relevant net estate is left to charity, a reduced Inheritance Tax rate of 36% may apply to the taxable portion.

The calculation can be more complex where an estate contains different groups of assets or where only part of the estate passes to charity. We can help assess the figures while your solicitor advises on the wording of the will.

Trust and estate accounts

Executors and trustees may need accounts showing income, expenses, asset sales, tax payments and distributions to beneficiaries.

We can prepare clear financial records and help identify Income Tax or Capital Gains Tax responsibilities arising during the administration period.

Where an executor or beneficiary needs to report personal taxable income, our self assessment accountant service can provide further support.

HMRC forms and supporting calculations

Where full estate details are required, the information submitted to HMRC must be complete and consistent with the probate application and supporting valuations.

We can help with:

Probate applications and legal estate administration remain legal matters. We can work alongside the executor’s probate solicitor to make sure the accounting and tax information is properly coordinated.

Inheritance tax planning should be reviewed regularly

An estate plan can become outdated following a change in property values, family circumstances, tax legislation or business ownership.

A review may be particularly important when you:

Most unused pension funds and pension death benefits are expected to be brought into the value of an estate for Inheritance Tax purposes from 6 April 2027. Estate plans involving significant pension wealth should therefore be reviewed before assuming that previous planning remains suitable.

We can work alongside your authorised financial adviser where regulated pension or investment advice is required.

What happens when you work with us

Initial discussion

We discuss your immediate concerns, family circumstances, assets and objectives. For an estate administration matter, we establish who is acting as executor and what information has already been collected.

Information gathering

We provide a clear list of the records required. This may include property details, bank statements, investment valuations, business accounts, trust documents, liabilities, previous tax returns and evidence of lifetime gifts.

Estate calculation

We prepare an initial estimate of the estate and potential tax position. Where figures are incomplete, we identify what still needs to be confirmed.

Relief and exemption review

We assess the exemptions, nil-rate bands and reliefs that may be relevant. We also explain any conditions, evidence or professional valuations needed before a claim can be made.

Recommendations or reporting support

For lifetime planning, we explain the potential tax effects of the available options. Following a death, we help prepare the calculations, records and relevant HMRC information required for the estate.

Coordination with other advisers

Inheritance Tax decisions can involve accounting, tax, legal, property and regulated financial advice. We can work with your solicitor, financial adviser, surveyor or other specialist so that each part of the process is addressed by the appropriate professional.

Why choose Asmat & Co Accountants?

Asmat & Co Accountants has supported individuals, families and UK businesses since 2007. Our team includes ACCA, CIMA and IFA-qualified professionals, and we act as HMRC agents for clients who need help managing their tax responsibilities.

You receive an approach that is:

We do not recommend artificial arrangements or make assumptions about your eligibility for relief. Our role is to help you understand the figures, meet your reporting responsibilities and make informed decisions with reliable information.

Discuss your estate or inheritance tax responsibilities

Whether you are reviewing your estate, supporting a family member or acting as an executor, early advice can prevent uncertainty and avoidable delays. Contact our team to arrange an initial discussion about your circumstances and the practical support you need.

Frequently asked questions

Do I need an inheritance tax accountant?

You are not legally required to appoint an inheritance tax accountant, but professional support can be valuable where an estate includes property, businesses, trusts, overseas assets, substantial gifts or several potential reliefs.

An accountant can help establish reliable figures, calculate the likely tax, prepare supporting schedules and assist with HMRC reporting. A solicitor may still be required for the will, probate, trust documents and other legal matters.

How much can you inherit without paying tax in the UK?

Beneficiaries do not normally pay Inheritance Tax personally on what they inherit. Any tax due is usually paid from the estate by the executor or personal representative.

The basic estate threshold is £325,000. A further residence nil-rate band of up to £175,000 may be available when a qualifying home passes to direct descendants. Additional exemptions or transferred allowances may apply, but the available amount depends on the estate’s circumstances.

What is the 7-year rule for Inheritance Tax?

A gift may fall outside your estate if you survive for at least 7 years after making it. Gifts made within 7 years of death may use some or all of the available nil-rate band and can affect the tax charged on the remaining estate.

Exempt gifts, regular gifts from surplus income and gifts where the donor retained a benefit can be treated differently. Accurate records should be kept for each gift.

Can I give my house to my children to avoid Inheritance Tax?

Giving your home to your children does not necessarily remove it from your estate. When you continue living in the property without paying a full market rent, HMRC may treat it as a gift with reservation of benefit. The property can then remain part of your estate for Inheritance Tax purposes.

Transferring a home may also create Capital Gains Tax, Stamp Duty Land Tax, care-fee, ownership and legal implications. Tax and legal advice should be obtained before making the transfer.

Who pays Inheritance Tax and when is it due?

Inheritance Tax is normally paid from the estate by the executor or personal representative. Beneficiaries usually receive their inheritance after the estate’s liabilities have been dealt with.

Payment is generally due by the end of the sixth month after the month in which the person died. Interest may be charged on late payments, and part of the tax will usually need to be paid before probate can be obtained. Instalment options may be available for certain assets.

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