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Individual / Wills Trusts & Probate
With frozen tax thresholds and rising property values pulling more ordinary estates into the net, inheritance tax now affects far more families than it once did. Our inheritance tax solicitors in Stockport help individuals, couples and business owners across Greater Manchester, the North West and nationally to plan ahead, use the available reliefs and pass on more of their wealth to the people who matter.
To speak to our team, call 0161 930 5151, email willsteam@gorvins.com or use our online contact form for a confidential, no obligation discussion.
Inheritance tax is a tax on the estate (the property, money and possessions) of someone who has died. It is normally charged at 40% on the value of the estate above a tax-free threshold. Most estates pay no inheritance tax at all, because they fall within the available allowances or pass to an exempt beneficiary such as a spouse or charity. Where tax is due, careful planning during your lifetime and a well drafted will can make a substantial difference to the final bill.
Two allowances are central to most estates. The nil rate band is £325,000 per person, and where you leave your home to children, grandchildren or other direct descendants, an additional residence nil rate band of up to £175,000 may apply. Both allowances are frozen until April 2031, and any unused portion can be transferred to a surviving spouse or civil partner. This means a married couple leaving their home to their children can potentially pass on up to £1 million free of inheritance tax. The residence nil rate band tapers away by £1 for every £2 by which an estate exceeds £2 million, so larger estates may lose it altogether.
To work out whether tax is due, you add up the value of everything in the estate, deduct debts and liabilities, and then apply the available allowances, exemptions and reliefs. Anything left above the threshold is taxed at 40%. The rate falls to 36% where at least 10% of the net estate is left to a UK charity, which can make charitable giving more tax efficient than many people expect.
The rules interact in ways that are easy to get wrong without advice, which is why professional help usually pays for itself. Getting the structure right in your will is often the single most effective step, because it determines whether both nil rate bands are fully used and whether the residence allowance is preserved.
There are several legitimate ways to reduce the inheritance tax your estate will pay, and the right combination depends on your circumstances:
Most gifts you make to another person are treated as potentially exempt transfers. If you survive for seven years after making the gift, it falls out of your estate completely and no inheritance tax is due on it. If you die within seven years, the gift is added back into your estate. Where the total of such gifts exceeds the nil rate band and you die between three and seven years after making them, taper relief reduces the tax on the excess on a sliding scale, from 32% for gifts made three to four years before death down to 8% for gifts made six to seven years before death. Taper relief reduces the tax, not the value of the gift, and it only applies once cumulative gifts exceed the nil rate band, which is a common source of confusion. Keeping clear written records of gifts and their dates makes life much easier for your executors.
Until recently, most unused pension funds sat outside the estate for inheritance tax purposes, which made pensions a popular way to pass on wealth. That is changing. Under Finance Act 2026, from 6 April 2027 most unused pension funds and death benefits will be brought within the value of the estate and taxed alongside other assets. Funds passing to a spouse or civil partner remain exempt, but many people will need to revisit how their pensions fit into their wider estate plan, and existing wills with charitable legacies should be reviewed so the intended gifts still take effect as planned. If your current will or online guidance tells you pensions always pass free of inheritance tax, it is out of date for deaths on or after 6 April 2027.
Business property relief and agricultural property relief can significantly reduce, or even remove, inheritance tax on qualifying business and farming assets. These reliefs changed from 6 April 2026. The 100% rate of relief is now capped at a combined allowance of £2.5 million of agricultural and business property per person, with qualifying value above that allowance receiving 50% relief, giving an effective inheritance tax rate of 20% on the excess. Shares listed on the Alternative Investment Market (AIM) now attract 50% relief rather than 100%. The allowance can be transferred between spouses and civil partners, so couples may pass on up to £5 million of qualifying assets at the full rate. If you own a business, farm or company shares, it is worth reviewing your succession plan against these rules, and our corporate solicitors can advise on the business side alongside your estate planning.
Gorvins is a Legal 500 recognised firm based in Stockport, advising clients throughout Greater Manchester, Cheshire, the North West and across England and Wales. Every member of our wills, trusts and probate team is STEP qualified or working towards the qualification, the leading professional standard for private client work, and the firm has been recognised in the Chambers guide for private wealth law.
Inheritance tax planning is rarely a one-off exercise. We take time to understand your assets, your family and your wishes, then explain your options in plain English and put the right structure in place, whether that means restructuring your will, making lifetime gifts, setting up a trust or reviewing how your pension and business assets are treated. Because the rules keep changing, we also help existing clients keep their planning up to date as thresholds freeze, pensions come into scope and reliefs are reformed. Where planning involves the possibility of losing capacity, we can prepare lasting powers of attorney at the same time, and when the time comes our probate and estate administration team can support your executors.
We are not financial advisers or accountants, and some planning is best done alongside one; where that is the case we will tell you and can work with your existing advisers. To start the conversation, call 0161 930 5151, email willsteam@gorvins.com or complete our online enquiry form.
Each person has a nil rate band of £325,000. If you leave your home to children or other direct descendants, an additional residence nil rate band of up to £175,000 may apply. Unused allowances transfer to a surviving spouse or civil partner, so a married couple leaving their home to their children can potentially pass on up to £1 million free of inheritance tax. These thresholds are frozen until April 2031.
Inheritance tax is normally charged at 40% on the value of an estate above the available allowances. The rate is reduced to 36% where at least 10% of the net estate is left to a UK charity. Assets passing to a spouse, civil partner or UK charity are generally exempt.
Most gifts to another person are potentially exempt transfers. If you survive seven years after making the gift, it falls out of your estate entirely. If you die within seven years, the gift is added back, though taper relief can reduce the tax on gifts made more than three years before death, but only on amounts above the nil rate band. Keeping records of gifts and their dates is important.
Historically most unused pension funds fell outside the estate for inheritance tax. From 6 April 2027, under Finance Act 2026, most unused pension funds and death benefits will be brought within the estate and taxed alongside other assets, though funds passing to a spouse or civil partner remain exempt. If pensions form part of your estate planning, it is worth reviewing your arrangements before then.
Yes, within limits. You can give up to £3,000 each tax year under the annual exemption, make small gifts of up to £250 per person, give wedding gifts within set limits and make regular gifts out of surplus income, all free of inheritance tax. Larger gifts are potentially exempt and become fully exempt if you survive seven years. Advice helps you gift effectively without unexpected tax or losing control of assets you may still need.
We provide legal advice on estate planning, wills, trusts and the structure of your affairs. We are not regulated financial advisers or accountants, so some planning, such as investment products or detailed tax computations, may need input from one. Where that is the case we will say so and can work alongside your existing advisers to give you a joined-up plan.
Wills, Trust & Probate
