Inheritance Tax Planning in Kent
Protecting your wealth and planning for the future
Inheritance Tax (IHT) can reduce the wealth you leave to your family. With property, pensions, investments, savings and business assets all potentially contributing to the value of your estate, understanding your potential Inheritance Tax liability is an important part of financial planning.
At Culverhouse & Co, our Chartered Financial Planners and Chartered Accountants provide expert inheritance tax planning in Kent, helping individuals and families understand their potential liability and consider appropriate ways to protect more of their wealth for the future.
Our approach looks at your complete financial position, including your pensions, investments, property and other assets, so that any inheritance tax planning fits alongside your wider financial goals.
Want to understand your potential Inheritance Tax liability? Talk to our team.
What is Inheritance Tax?
Inheritance Tax is a tax on the value of someone's estate when they die. An estate can include property, money, investments, possessions and other assets.
The standard rate of Inheritance Tax is currently 40% on the taxable portion of an estate. However, various allowances, exemptions and reliefs may reduce the amount payable.
The standard Nil Rate Band is £325,000. A Residence Nil Rate Band of up to £175,000 may also be available where the relevant conditions are met, including when a qualifying residence is passed to direct descendants.
Unused allowances may also be transferable between spouses or civil partners.
Because everyone's circumstances are different, calculating your potential Inheritance Tax liability involves more than simply adding up the value of your assets.
Who should consider Inheritance Tax planning?
You may benefit from inheritance tax planning if you:
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Own a property that has increased significantly in value
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Have substantial savings or investments
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Have a large pension or several pension arrangements
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Own a business or shares in a business
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Have received or made significant gifts
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Want to pass wealth to your children or grandchildren
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Are concerned about how much Inheritance Tax your family could eventually pay
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Have accumulated significant wealth over your lifetime
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Have not reviewed your financial arrangements for several years
You do not necessarily need to consider yourself wealthy before Inheritance Tax becomes relevant. For many families in Kent, the value of their home, pensions, investments and other assets can mean that IHT needs to be considered as part of their long-term financial planning.
Inheritance Tax and the 2027 changes
Inheritance Tax planning is particularly relevant at the moment because significant changes are being introduced.
From 6 April 2027, most unused pension funds and pension death benefits are due to come within the scope of Inheritance Tax.
These changes could affect people who have previously considered their pension or business assets to be outside their potential IHT liability.
If you have not reviewed your financial arrangements recently, it may be worth reassessing your position in light of the new rules.
How much Inheritance Tax could I pay?
The amount of Inheritance Tax you could pay depends on the value and type of assets you own, the allowances available to you and your individual circumstances.
For example, the current Nil Rate Band is £325,000. If you qualify for the full Residence Nil Rate Band, a further £175,000 may be available.
For a qualifying married couple or civil partners, unused allowances may potentially be transferred between them. This can mean that a couple could have a significant amount of their estate outside the scope of IHT, subject to the relevant conditions.
However, calculating your potential liability can become more complicated where you have:
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Property
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Investments
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Pension funds
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Business interests
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Gifts made during your lifetime
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Trusts or other arrangements
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Business assets
Understanding your potential exposure is the first step towards effective inheritance tax planning.
How can I reduce my Inheritance Tax liability?
Lifetime gifts: Giving assets or money to family members during your lifetime can form part of an inheritance tax planning strategy. However, gifts can have different tax consequences depending on the circumstances. Some gifts may become exempt from IHT after a certain period; others may remain relevant to your estate. It's important to consider the effect of any gift on your own financial security before making a significant decision.
Reviewing your pensions: Pensions are becoming an increasingly important part of inheritance tax planning. From 6 April 2027, most unused pension funds and pension death benefits will be included when calculating an estate's value for Inheritance Tax purposes. If you have substantial pension savings, it is important to understand how upcoming changes could affect your wider estate and retirement planning. The right approach depends on your retirement needs, income, investments, age and wider financial circumstances.
Reviewing your investments: Your investment portfolio can form a significant part of your estate. We review your investments alongside other assets and consider whether your existing arrangements remain appropriate for your objectives, tax position and plans for passing wealth to your family. Your investments must still support your own financial needs and provide a good balance between growth, income, risk and access to capital.
Making use of available allowances and reliefs: Various Inheritance Tax allowances and reliefs may be available depending on your circumstances. This can include the Nil Rate Band, Residence Nil Rate Band and certain reliefs relating to qualifying business assets. The rules surrounding these reliefs can be complex and have changed in 2026, so your inheritance tax planning should reflect current rules rather than relying on outdated information.
Inheritance Tax planning in Kent
Culverhouse & Co provides inheritance tax planning and wider financial planning to individuals and families across Kent, South London, Surrey, East Sussex and the surrounding areas.
Our Chartered Financial Advisers and Chartered Accountants work with clients in areas including Orpington, Bromley, Sevenoaks, Swanley, Edenbridge, Tonbridge, Tunbridge Wells, Westerham, Maidstone, Chelsfield, Locksbottom, Petts Wood, Dartford, Godstone, Sidcup and East Grinstead, as well as surrounding areas.
Whether you are concerned about the value of your home, have accumulated significant pension and investment savings, or simply want to understand how your wealth could be passed on to your family, we can help you assess your position and plan ahead.
How Culverhouse & Co can help with Inheritance Tax planning
Effective inheritance tax planning needs to consider your whole financial position, rather than focusing on one asset or one tax rule.
Our Chartered Financial Advisers can help you:
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Assess your potential Inheritance Tax liability
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Consider lifetime gifting as part of your wider financial plan
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Consider Inheritance Tax alongside your own financial security
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Review your investment strategy and how it fits into your estate
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Understand the allowances and reliefs that may be relevant to you
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Regularly review your plan as your circumstances and tax rules change
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Consider how your financial arrangements could affect the wealth you ultimately pass to your family
Reducing a potential tax liability should not come at the expense of having enough money to enjoy your retirement or meet your future needs.
Why plan for Inheritance Tax now?
Inheritance Tax planning is not something that necessarily needs to wait until later in life.
The earlier you understand your potential IHT exposure, the more time you may have to consider your options carefully. Planning ahead can help you avoid rushed decisions and ensure that any changes to your pensions, investments, gifts or other assets fit into a wider financial plan.
Your circumstances may also change over time. Your property could increase in value, your pension or investments could grow, or you could receive an inheritance yourself. Regular financial reviews can help ensure your inheritance tax planning continues to reflect your circumstances and objectives.
Stay informed with the latest Inheritance Tax updates
