Swift Accountants · Listening, understanding, advising
You have spent years building a life for the people you love. Let’s help you understand how to look after them, while keeping your own future secure.
Perhaps you want to help your children, protect a partner or understand what happens to your home. We make room for those questions, explain the tax position and help you decide what to do next.
No obligation to become a client. We agree the scope and fee before paid work begins.
There is a person behind every question
That is a good place to start. You may have read conflicting advice, heard that everyone gets a £1 million allowance, or wondered whether giving something away now is the answer.
Our inheritance tax planning conversations begin with your circumstances. The aim is a plan you understand and feel comfortable living with.
The starting figures · 2026/27
Inheritance Tax can apply to what you leave when you die. The amount depends on your estate, earlier gifts, beneficiaries and the allowances or reliefs available.
The standard individual allowance. Earlier chargeable gifts can use some or all of it.
An additional allowance where a qualifying home passes to direct descendants, subject to conditions.
Generally applied after available allowances, exemptions and reliefs, rather than to the whole estate.
A surviving spouse or civil partner’s estate can sometimes use two £325,000 basic allowances and two £175,000 residence allowances. That adds up to £1 million. It requires the relevant unused allowances to be transferable and claimed, sufficient qualifying residential value and the other conditions to be met.
It is not an automatic allowance for every couple or every homeowner.
Transfers between spouses or civil partners are generally exempt, and unused allowances may transfer on death. Different long-term UK residence positions can restrict the spouse exemption, so tell us about overseas connections.
Living together does not create the spouse exemption or transferable allowances. Where there are children from different relationships, your will and ownership arrangements deserve particular care.
Sources: HMRC thresholds and rates , transferring the basic allowance and residence allowance conditions .
What the figures can mean
These simplified examples show why checking the available allowances matters. They are illustrations, not estimates for your family.
Swipe across the table to see each calculation.
| Situation | Net estate | Available allowances | Illustrative IHT |
|---|---|---|---|
| One person, basic allowance only | £600,000 | £325,000; no residence allowance | £275,000 × 40% = £110,000 |
| One person, qualifying home left to children | £600,000 | £325,000 + full £175,000 residence allowance | £100,000 × 40% = £40,000 |
| Surviving spouse with full transferred allowances | £1,200,000 | £650,000 basic + £350,000 residence allowances | £200,000 × 40% = £80,000 |
Assumptions: allowable liabilities are already deducted; no earlier gifts use the basic allowance; no other reliefs or exemptions apply. In examples two and three, the qualifying home interest passing to direct descendants is worth at least the residence allowance claimed. Example three assumes both transfers are fully available and validly claimed.
Calculations apply HMRC’s standard rate and the residence allowance rules .
More than a property value
It may also be the largest asset in your estate. Before changing ownership, consider where you will live, who will control the property and what the change means for everyone involved.
The residence nil-rate band can apply where a qualifying home passes to direct descendants. This can include adopted, foster and stepchildren, as well as grandchildren. Leaving it to a sibling, niece or nephew does not qualify on that relationship alone.
The residence allowance reduces by £1 for every £2 above the £2 million taper threshold. The estate value for this test is broadly after allowable liabilities but before exemptions and reliefs such as Business Relief.
A gift while retaining a benefit can remain within your estate. Simply waiting seven years does not solve a gift-with-reservation problem. Paying a genuine market rent can be relevant, but the arrangement, affordability and wider tax consequences need careful review.
Downsizing or selling a home can sometimes preserve access to a residence allowance through special provisions. Keep the sale and ownership records and check the conditions.
Property gifts may also raise Capital Gains Tax questions . Review the whole transaction before signing.
Sources: passing on a home , residence allowance and tapering , and downsizing provisions .
Helping now, with tomorrow in mind
Helping with a deposit, education or everyday life can mean a great deal. First, allow for your own income, housing, health and future needs.
Then establish whether the gift is exempt, potentially exempt or subject to different rules. Record the date, recipient, value and reason for the treatment used.
You are allowed to keep money for yourself. A plan should leave you comfortable, with choices about your own future.
| Exemption | Key point |
|---|---|
| Annual exemption | £3,000 in total per donor each tax year. Unused allowance carries forward for one tax year only. |
| Small gifts | Up to £250 per recipient per tax year, subject to the rules on combining exemptions. |
| Wedding or civil partnership gifts | Up to £5,000 to a child, £2,500 to a grandchild or great-grandchild, or £1,000 to anyone else, where the conditions are met. |
| Normal expenditure out of income | Qualifying gifts from income can be exempt where they form part of normal expenditure and leave enough income to maintain your usual standard of living. |
For gifts out of income, keep evidence of income, normal spending and the pattern or commitment to give. A transfer from accumulated capital does not become income merely because it is paid monthly.
Sources: HMRC gift exemptions and normal expenditure out of income .
The seven-year rule, explained carefully
An outright gift to an individual is often a potentially exempt transfer. It normally falls outside Inheritance Tax if the donor survives seven years, provided no benefit is retained. Exempt gifts do not need that waiting period; many trust transfers follow different rules.
Non-exempt gifts are considered in date order and can use the basic nil-rate band before the estate. A gift may therefore increase tax on the remaining estate even if the gift itself has no tax to pay.
Where tax is payable on a gift, surviving more than three years can reduce that tax. Taper relief does not reduce the gift’s value or restore the allowance it uses.
Tell us about earlier trust transfers as well as recent gifts: the relevant history can extend beyond seven years. Before giving property or shares, also check whether a disposal for Capital Gains Tax arises.
Sources: gifts and the seven-year rule and HMRC taper relief guidance .
Keep your retirement in the picture
Your pension has an important job: supporting your life. Any estate review should consider retirement income and the tax consequences of withdrawals alongside what may eventually pass to beneficiaries.
Many discretionary pension death benefits are currently outside the estate for Inheritance Tax. Scheme terms and the circumstances still matter.
Most unused pension funds and pension death benefits will enter the Inheritance Tax estate under the legislated changes. Exceptions include registered-scheme death-in-service benefits and certain dependants’ scheme pensions.
Review pension values, beneficiary nominations and your estate projections with your advisers. A pension withdrawal is not automatically a tax saving: Income Tax and your future needs must also be considered.
A coordinated conversation. We can discuss the tax picture alongside an appropriately authorised financial adviser. Pension, investment and insurance product recommendations belong with the relevant regulated adviser.
Sources: current pension death-benefit guidance , the pension measure and HMRC’s August 2026 technical note .
For family businesses and farms
Who will run the business? Who will own it? Where would money for an estate tax bill come from? These questions deserve attention alongside the relief calculation.
For deaths from 6 April 2026, the combined allowance for qualifying agricultural and business property receiving 100% relief is £2.5 million. Qualifying value above the available allowance generally receives 50% relief.
Unused allowance from a late spouse or civil partner may be claimed, potentially increasing it to £5 million. Qualification, earlier gifts and trust arrangements need checking.
This is a relief for eligible assets, not a general allowance for any £2.5 million estate. Some assets, including qualifying AIM shares, receive only 50% relief. Businesses mainly holding investments generally do not qualify for Business Relief.
Gather accounts, shareholdings, partnership agreements, land details and recent valuations. Agricultural Relief has its own occupation, ownership and agricultural-value conditions. We can help identify the tax questions that need to sit alongside your succession arrangements.
Sources: Business Relief from April 2026 and Agricultural Relief and the combined allowance .
Make the pieces work together
Good inheritance tax planning connects the numbers with what you want to happen. Your accountant, solicitor and financial adviser may each have a part to play.
Review your will after marriage, separation, bereavement or a change in your wishes. Ask your solicitor about ownership arrangements and the relevant power-of-attorney documents. We can help explain the tax implications of the proposed plan.
A trust can help address control or beneficiary needs, but it is not automatically free of tax. Depending on the arrangement, entry, ten-year and exit charges, reporting duties and other taxes may arise. Legal drafting and tax advice should work together.
Qualifying charitable gifts are generally exempt. Meeting the 10% charitable-giving test can reduce the rate on the relevant taxable part of an estate to 36%. The calculation has specific rules; check the effect on both the cause you support and your other beneficiaries.
Since 6 April 2025, long-term UK residence is central to the treatment of overseas assets. The main test looks at UK residence in at least 10 of the previous 20 tax years, with further rules. Exposure can continue after leaving the UK, so a move abroad needs its own review.
Sources: trusts and Inheritance Tax , charitable giving and rates and long-term UK residence .
How Swift can help
We will agree the work you need, the information required and the fee. You should know what happens next and who to ask when a question comes up.
Start with your family, an approximate asset picture and the question on your mind. You do not need everything perfectly organised.
We review the agreed tax questions, identify relevant allowances and explain the assumptions and information gaps.
Discuss practical actions, any specialist input and when to review the plan as your life or the rules change.
Tell us whether phone, video or an arranged meeting would help you feel most comfortable. Sensitive documents can be shared through the agreed secure process.
If someone has already died
When you are grieving, even knowing where to begin can feel difficult.
Tell us the date of death, whether a solicitor is involved and what correspondence you have received. We can discuss the tax support required and agree how it fits with the estate administration.
Inheritance Tax is normally due by the end of the sixth month after the month of death. Interest can apply after that. Some assets qualify for instalments, and payment and reporting deadlines are separate questions.
Read our clients’ experiences
Choosing an accountant is personal. Read what clients say about their experience with Swift, and use your free conversation to get a feel for how we listen and explain.
“made the process very simple” Olivia Grant
“Really easy to get hold of” Claire Allwood
“kept in touch with me” Sharon Parry
Short excerpts published on Swift’s website about general accountancy services. These are not presented as inheritance tax client testimonials.
Straight answers to common questions
Start with the question closest to your situation. We can then help you understand which details change the answer.
It means reviewing your estate, family circumstances and wishes, then considering the tax consequences of your choices. It can include allowances, gifts, succession and records, alongside legal and financial advice where needed.
When you are considering a significant gift, reviewing retirement plans, selling a business or updating your will. Starting while you have time to consider the choices can make the conversation easier.
The basic allowance is £325,000. A qualifying residence allowance of up to £175,000 can bring the total to £500,000. The full amount is not available in every estate.
No. That figure requires full basic and residence allowances, including valid transfers from the first spouse, sufficient qualifying residential value and the other conditions. Earlier gifts and the residence taper can affect the result.
No. Cohabitation does not provide the spouse exemption or the ability to transfer unused spouse allowances. Review ownership, wills and the likely tax position for each person.
No. It can form part of your estate. A residence allowance may help if the qualifying conditions are met; being your main home does not itself make it exempt.
Special downsizing provisions may help preserve a residence allowance where the conditions are satisfied. Keep records of the former home and the transaction, and review what passes to direct descendants.
No. It is the donor’s total annual exemption, which can be divided between recipients. Other exemptions may be relevant separately.
Yes. £3,000 is an exemption, not a legal limit on giving. A larger gift needs its own tax analysis and an affordability check.
No. Three years is relevant to taper relief where tax is due on a gift. It is not a general exemption, and taper relief reduces tax rather than the gift’s value.
Retaining a benefit can keep the property within your estate. Check the occupation arrangement, ownership risks and other taxes before making a transfer.
Potentially, where the normal-expenditure conditions are met and you retain enough income for your usual lifestyle. Keep evidence of income, spending and the giving arrangement.
From 6 April 2027, most unused pension funds and pension death benefits will be included in the estate, with specified exceptions. Check your scheme and plans with the appropriate advisers.
No. Treatment depends on the trust, assets and circumstances. Tax charges and ongoing administration can arise, so obtain advice before transferring assets.
No. Activity, ownership and asset conditions matter. The April 2026 rules also limit the value receiving 100% relief, while some qualifying assets receive 50% relief.
Yes. Giving away property or investments may create a Capital Gains Tax disposal even without a cash payment. Review the relevant exemptions and reliefs before proceeding.
Not automatically. UK assets and long-term residence rules can remain relevant, including a period after departure. Overseas connections require a review of both UK and applicable foreign rules.
That depends on the estate’s tax position, cash, assets and available payment arrangements. Reviewing liquidity now helps identify a potential funding problem before the family faces it.
We can discuss coordinating the agreed tax work with your existing advisers, with your authority. Legal drafting and regulated product advice remain with the appropriately qualified professionals.
Your initial chat is completely free. The paid work depends on the estate, questions and complexity. We explain the proposed scope and fee before you decide to proceed.
For the people. For your future.
Your first conversation can start with one sentence: “I would like to understand where we stand.”
Tell us what you want for your family and what is worrying you. We will listen, explain the next useful step and give you space to decide.
No pressure to commit. Clear scope and fees before paid work starts.
Explore related help: tax planning , Capital Gains Tax advice and Income Tax support .
Listening,
Understanding,
Advising
Tell us what you need help with. We’ll call you to understand your situation, explain how we can help and agree the next steps.
