Surrey is one of the most inheritance tax-affected counties in the UK. High property values mean that families who would not consider themselves wealthy can face very significant IHT bills. We help Surrey residents understand their position, plan ahead and pass more of what they have built to the people they care about.
The nil rate band has been frozen at £325,000 since 2009. The residence nil rate band, which added a further £175,000 for those leaving their main home to direct descendants, has been frozen since 2020. Both are now confirmed frozen until at least April 2030. Meanwhile, house prices across Surrey have continued to rise significantly, pulling more and more families across the threshold into inheritance tax territory for the first time.
HMRC collected a record £7.5 billion in inheritance tax in 2023/24, and that figure is expected to keep growing. The combination of frozen thresholds and rising property values in Surrey means that many families in Kingston, Esher, Cobham, Weybridge and the surrounding areas now face inheritance tax bills they did not anticipate a decade ago.
The good news is that inheritance tax is one of the most plannable taxes in the UK. Most of the reliefs and exemptions available require time to work properly, which means that the earlier you start thinking about your estate, the more options you have. Acting when it is convenient is far better than acting when it is urgent, and those who plan well in advance consistently leave far more to their families than those who leave it to chance.
Both thresholds are frozen until April 2030. As Surrey property values continue to rise, the gap between your estate's value and the tax-free threshold grows every year without any change in the rules.
Every estate is different. We start with your full financial picture and work through the options that are actually available to you, rather than applying a one-size-fits-all solution.
We start by calculating your current inheritance tax exposure. This covers property, savings, investments, business interests, pensions and any gifts made in the last seven years. We project forward to show how the position changes over time with and without planning, giving you a clear picture of what is at stake and where the most significant savings are available.
Start hereEnsuring both spouses use their nil rate band and residence nil rate band to the maximum is often the single most valuable step in estate planning. We review how your assets are currently owned, whether your will is structured to maximise the bands available and whether any previous transfers have used up nil rate band that needs to be factored in. Getting this right can be worth up to £400,000 in tax savings for a Surrey couple.
Gifts made during your lifetime are one of the most effective ways to reduce an inheritance tax bill, provided they are structured correctly and the timing is right. We design a gifting programme tailored to your circumstances, covering the annual £3,000 exemption, potentially exempt transfers, normal expenditure out of income, and gifts in connection with marriage or civil partnership, all documented properly to ensure HMRC cannot challenge them later.
Trusts can be useful estate planning tools in the right circumstances, but they are complex, have ongoing tax implications and are subject to greater HMRC scrutiny than in previous years. We provide honest advice on whether a trust structure is appropriate for your situation, what type of trust would work best, the tax consequences of setting it up and the ongoing compliance requirements, including periodic and exit charges every ten years.
A will that does not consider inheritance tax can undo years of careful planning. We review the tax efficiency of your existing will, identify where the current structure fails to make best use of available bands and exemptions and provide clear written recommendations for your solicitor to incorporate. We work closely with Surrey-based private client solicitors to ensure the tax advice and the legal drafting are fully aligned.
Qualifying business assets can attract 100% inheritance tax relief, potentially removing them from the estate entirely. From April 2026, this relief will be capped at £1 million of qualifying assets, with a 50% rate on the excess. We assess whether your business interests qualify, review how your shares are structured to maximise the relief available and advise on whether any pre-April 2026 planning steps are appropriate given the new rules.
April 2026 changePension pots currently fall outside the estate for inheritance tax purposes, making them an exceptionally tax-efficient way to pass wealth to the next generation. From April 2027, unused defined contribution pension funds are proposed to be brought into the estate. We advise on the interaction between pension drawdown, your estate position and the proposed new rules, helping you make the most of the current regime before the rules change.
April 2027 changeLeaving at least 10% of your net estate to charity reduces the inheritance tax rate from 40% to 36% on the remainder. This reduced rate often benefits the family as well as the charity, because the tax saved on the whole estate can exceed the additional charitable donation. We model the financial impact of charitable giving options within your estate plan so you can see the numbers clearly before deciding.
A Family Investment Company (FIC) is a private limited company used to hold investments and pass wealth to future generations in a tax-efficient way. Directors retain control while shares are gifted to children or grandchildren, potentially outside the estate after seven years. FICs are a useful alternative to trusts in many circumstances, particularly for families with significant investment wealth. We advise on whether an FIC is appropriate and coordinate the setup alongside your solicitors.
Surrey consistently ranks among the highest counties in England for both average property values and inheritance tax receipts. A three-bedroom semi-detached house in Esher, Cobham or Weybridge can easily be worth £700,000 to £900,000. Add a modest investment portfolio, savings and a pension pot, and a couple can find their estate approaching £1.5 million or more without any business interests or unusual assets.
The personal allowance tapering that creates a 60% effective income tax rate on earnings between £100,000 and £125,140 affects a disproportionate share of Surrey's professional workforce. Many of these individuals are accumulating assets quickly, often without realising that each year of growth is also increasing their future inheritance tax exposure.
We have been advising families across Kingston upon Thames, Richmond, Wimbledon, Esher, Cobham, Weybridge, Epsom and the wider Surrey area since 2009. We understand the specific financial profile of Surrey homeowners and the particular planning challenges that come with high property values in a relatively concentrated geographic area.
Estate planning is a conversation, not a product. We take the time to understand your complete picture before making any recommendations.
We gather details of your full asset picture, including property, savings, investments, pensions and any business interests, and calculate your current IHT exposure with a written summary.
We walk through the options available to you in plain English, explain the risks and benefits of each and help you identify which strategies fit your circumstances and your wishes for the family.
We produce a written estate plan covering the steps we recommend, the order in which to take them and the tax saving each one achieves. This also includes any points to raise with your solicitor.
We help coordinate the implementation of agreed steps, liaise with your solicitor where needed and review the plan annually to ensure it stays appropriate as your circumstances and the tax rules evolve.
We work with individuals and families across Surrey whose estate planning needs range from a first review of their IHT position to complex multi-generational planning for those with significant property, business and investment wealth.
If your home in Surrey is worth £500,000 or more, inheritance tax is likely to be relevant to your estate. We assess your full position, explain the residence nil rate band rules and identify the most practical planning steps for your situation.
Spouses and civil partners have access to powerful inheritance tax planning tools that single individuals do not. We ensure both partners' nil rate bands and residence nil rate bands are fully preserved and correctly transferred, potentially protecting up to £1 million from tax.
Business Property Relief can dramatically reduce the IHT on qualifying business assets, but the rules are changing from April 2026. We assess your eligibility, advise on how your shares are structured and help you plan around the new £1 million cap ahead of the deadline.
Surrey has a high concentration of senior professionals in finance, law, technology and corporate roles who are accumulating significant assets rapidly. We provide joined-up advice across income tax, capital gains tax and inheritance tax so your planning works as a coherent whole.
Property portfolios create substantial IHT exposure because they attract no Business Property Relief. We advise on holding structure, asset protection, gifting strategies and the interaction between rental income, capital gains and inheritance tax across a portfolio.
Whether you want to help children onto the property ladder, fund school fees, reduce your estate gradually or create a structure that lets the family business pass to the next generation efficiently, we design plans that reflect your family's specific wishes and circumstances.
For 2025/26, everyone has a nil rate band of £325,000, meaning the first £325,000 of your estate passes free of inheritance tax. If you leave your main home to direct descendants such as children or grandchildren, you also benefit from the residence nil rate band of £175,000, bringing the total to £500,000. For married couples and civil partners, unused nil rate bands transfer on the first death, meaning a couple could collectively pass up to £1 million free of inheritance tax if both allowances are fully intact. Both bands are confirmed frozen at current levels until at least April 2030. The standard rate of inheritance tax is 40% on the value above these thresholds.
The residence nil rate band is an additional inheritance tax allowance of £175,000 available when you leave your main home to direct descendants. This includes children, stepchildren, adopted children and grandchildren, but not nieces, nephews or unmarried partners. It works on top of the standard £325,000 nil rate band, potentially giving an individual a combined threshold of £500,000. The residence nil rate band is tapered at a rate of £1 for every £2 of net estate value above £2 million, so it is fully withdrawn for estates worth £2.35 million or more. Unused residence nil rate band from the first spouse to die can be transferred to the survivor's estate, giving a couple up to £350,000 of residence nil rate band on the second death.
There are several legitimate ways to reduce an inheritance tax liability. The most effective include making regular lifetime gifts using the annual exemption of £3,000 per year with one year's carry-forward, making larger potentially exempt transfers that become fully exempt if you survive seven years, leaving at least 10% of your net estate to charity to reduce the rate from 40% to 36%, ensuring your will is structured to maximise all nil rate bands available, considering whether a trust structure is appropriate, reviewing pension planning given the proposed April 2027 changes, and making use of Business Property Relief or Agricultural Property Relief if your estate includes qualifying assets. The right strategy depends on your individual circumstances, which is why a personalised review with a qualified adviser is the essential starting point.
A potentially exempt transfer is a gift made to an individual during your lifetime. The gift becomes fully exempt from inheritance tax if you survive for seven years after making it. If you die within seven years, the gift may be included in your estate and subject to inheritance tax, though taper relief reduces the charge on gifts made more than three years before death. Taper relief applies to the tax on the gift rather than the value of the gift itself, and large gifts made within seven years will use up your nil rate band before triggering a direct tax charge. This is an important detail that catches many people out and is worth discussing before making large gifts.
The government has proposed that from April 2027, unused defined contribution pension pots will be brought into the calculation of a person's estate for inheritance tax purposes. Currently pension funds fall entirely outside the estate, making them a very tax-efficient way to pass wealth to the next generation. If the change proceeds as proposed, unused pension funds remaining on death could be subject to the 40% inheritance tax charge. This is a significant change for many Surrey families who have accumulated substantial pension wealth alongside property. We are monitoring the legislation closely and advising clients to review their pension and estate planning strategy now, before April 2027, to ensure they are in the best possible position under the new rules.
Business Property Relief is an inheritance tax relief that can reduce the taxable value of qualifying business assets by up to 100%, effectively removing them from the estate. It applies to shares in unlisted trading companies, interests in business partnerships and certain business assets. Agricultural Property Relief works similarly for farming assets. From April 2026, following the Autumn 2024 Budget announcement, 100% relief will be capped at the first £1 million of qualifying assets, with a 50% rate applying to the excess above £1 million. This is a significant change for business owners with assets above the cap. If your estate includes business or agricultural assets, a review before April 2026 is strongly advisable.
A will is the foundation of any estate plan. Without one, your estate is distributed according to the rules of intestacy, which may not reflect your wishes and which frequently fails to use available nil rate bands efficiently. Unmarried couples receive no inheritance tax exemption at all under intestacy, meaning significant assets could pass directly to HMRC rather than to a partner. A properly drafted will ensures your assets go to the intended people in the most tax-efficient way. While we do not draft wills ourselves, we work closely with Surrey solicitors specialising in private client work and can review the tax efficiency of an existing will, providing clear recommendations for the solicitor to incorporate.
Get in touch for a no-obligation estate planning review. We will assess your current IHT position, explain the options clearly and give you a practical written plan. We work with families across Surrey and West London, in person at our Kingston upon Thames office or fully remotely.