As specialists in estate and inheritance tax in the UK, at Pearl Lemon Accountants we know how important it is to ensure your hard-earned wealth benefits your loved ones. Without careful planning, significant parts of your estate may be subject to inheritance tax (IHT), which is charged at 40% on estates above £325,000.
We provide expert advice and customized strategies to help you manage your assets effectively. From utilizing trusts to taking advantage of UK-specific tax reliefs, we work closely with you to secure your legacy and ensure your wealth stays within your family.
Our Estate and Inheritance Tax Services
Our services are designed to meet the specific challenges of UK residents and businesses, offering practical solutions to preserve your wealth.
Inheritance Tax Planning
Effective planning can significantly reduce your tax exposure. We will:
- Assess your financial situation to identify opportunities for tax efficiency.
- Help you make the most of your nil-rate band and RNRB allowances.
- Implement gifting strategies to take full advantage of the seven-year rule.
For instance, we recently assisted a family in Surrey with assets worth £2M, saving over £150,000 in tax through a combination of trusts and strategic gifting.
Trust Management for UK Families
Trusts are essential tools for managing inheritance in a way that benefits your family while keeping tax liabilities low. Our expertise includes:
- Setting up Discretionary Trusts to provide flexibility in distributing wealth.
- Using Interest in Possession Trusts to balance income generation and capital preservation.
- Advising on Bare Trusts to safeguard assets for minors.
Whether you’re planning for a growing family or looking to protect generational wealth, trusts allow you to stay in control of how and when your assets are used.
Support for Business Owners and Farmers
Running a business or owning agricultural property adds another layer of complexity. We specialize in helping business owners and farmers benefit from reliefs like:
- Business Property Relief (BPR): Up to 100% exemption for qualifying assets such as shares in private companies or business equipment.
- Agricultural Property Relief (APR): Reducing liabilities on farmhouses, livestock, and agricultural land.
One example is a Yorkshire-based family farm where we reduced the estate’s taxable value by £750,000 using APR.
Specialist Advice for Non-Domiciled Clients
If you have international ties, the UK’s tax system can be challenging. We offer guidance on:
- Creating Excluded Property Trusts to protect non-UK assets.
- Using Double Taxation Treaties to avoid tax duplication.
- Ensuring adherence with the Statutory Residence Test to optimize your tax position.
We worked with a non-domiciled client in London to secure their family’s global estate, avoiding £200,000 in potential taxes through careful restructuring.
What You Can Expect from Us
When you work with Pearl Lemon Accountants, you gain a partner who prioritizes protecting your wealth and securing your family’s future. Our deep understanding of UK tax legislation ensures every solution is precise, practical, and customized to your unique situation. Here’s what you can expect:
Clarity at Every Step
We simplify complex tax laws and strategies so you understand every recommendation. From trusts to gifting, we’ll ensure you’re confident in the steps we take together.
Expert Recommendations
Every plan is backed by years of experience and up-to-date knowledge of UK inheritance tax laws. Our advice is focused on delivering real results, not generic solutions.
Long-Term Wealth Protection
We create strategies that protect your family’s financial future while ensuring smooth asset transfers. Your legacy remains secure for generations to come.
Customized Service
No two estates are alike, so we design every aspect of your plan to reflect your goals. Whether it’s business relief or property planning, we address your specific needs.
Seamless Collaboration
If you have existing advisors, we integrate seamlessly to ensure your estate plan is cohesive. From legal considerations to financial strategies, we cover all bases.
Ongoing Support
Tax laws change, and so do your circumstances. We monitor and update your estate plan to keep it effective, adapting to any new opportunities or challenges.
Peace of Mind
Above all, we’re committed to giving you confidence and assurance. You can focus on living your life while knowing your wealth and loved ones are in safe hands.
Our Process – How We Work at Pearl Lemon Accountants
At Pearl Lemon Accountants, our approach to estate and inheritance tax advisory services is designed to deliver clarity, efficiency, and tangible results. Every client’s situation is unique, so we’ve developed a streamlined, personalized process that ensures no detail is overlooked.
Here’s how we work with you to protect your wealth and secure your legacy:
Step 1: Initial Consultation – Understanding Your Needs
We begin with a one-on-one consultation to get a clear picture of your financial situation, family circumstances, and goals. During this step, we:
- Assess your estate’s value, including property, business interests, and investments.
- Identify potential inheritance tax liabilities.
- Discuss your plans for asset distribution, including gifting and inheritance.
Example: For a family in Sussex, our consultation revealed an overlooked property trust that required immediate restructuring to avoid an unnecessary £80,000 tax bill.
Step 2: Tax Planning Strategy
Based on the insights gathered, we develop a customized tax planning strategy that aligns with your goals. This includes:
- Leveraging nil-rate bands and Residence Nil-Rate Bands to reduce liabilities.
- Evaluating the use of trusts for asset protection and income distribution.
- Advising on gifting strategies and how to apply the seven-year rule effectively.
Our plans aren’t just theoretical; they’re actionable and fully compliant with UK tax legislation.
Step 3: Implementing Solutions
Once the strategy is agreed upon, our team works closely with you to put it into action. This might include:
- Establishing trusts such as Discretionary Trusts or Bare Trusts.
- Drafting or updating your will to reflect your intentions and minimize tax exposure.
- Transferring assets under gifting exemptions or creating Excluded Property Trusts for international holdings.
We handle all the paperwork and ensure everything is done under HMRC requirements, saving you time and ensuring accuracy.
Step 4: Ongoing Monitoring and Support
Tax laws change, and so do personal circumstances. We provide ongoing monitoring of your estate plan to:
- Ensure alignment with the latest UK inheritance tax regulations.
- Adjust strategies to accommodate new assets, property acquisitions, or family changes.
- Provide updates on tax reliefs or thresholds that could benefit you.
Example: For a client in Manchester, our regular reviews uncovered an opportunity to use the Residence Nil-Rate Band to save an additional £50,000 in taxes.
Step 5: Expert Communication and Collaboration
Throughout the process, we maintain open communication with you and your legal or financial advisors (if applicable). Our goal is to ensure that all parts of your estate plan are cohesive, detailed, and aligned with your long-term objectives.
FAQs
The nil-rate band is the amount of an estate exempt from IHT. Currently set at £325,000, it can be transferred between spouses or civil partners, doubling the allowance to £650,000.
The RNRB adds up to £175,000 to your allowance if your primary residence is left to direct descendants, such as children or grandchildren.
Gifts made more than seven years before death are exempt from IHT. Additionally, taper relief applies to gifts within seven years, reducing tax owed incrementally.
UK residents are taxed on worldwide assets. Non-domiciled individuals can protect non-UK assets through Excluded Property Trusts.
Business owners can qualify for Business Property Relief (BPR), which offers up to 100% exemption for assets like shares and equipment.
Let’s Protect Your Family’s Future
Planning your estate is more than just a financial decision—it’s about ensuring your loved ones are cared for and your legacy remains intact. At Pearl Lemon Accountants, we provide the expert guidance you need to make the most of the UK’s inheritance tax rules.
Arrange a consultation today and take the first step in securing your estate for future generations.
