Your local CERTIFIED FINANCIAL PLANNER™ asks…
Could your family face a significant tax bill on your death?

Inheritance Tax (IHT) is often called Britain’s most unpopular tax – and for good reason.

After a lifetime of working hard, saving carefully, and building wealth for your family, the idea of 40% of it disappearing to HMRC can come as a nasty shock.

The amount of IHT that families are paying has continuously risen, too. In fact, the government generated record IHT receipts of £8.2 billion in 2024/25, following three more record-breaking years.

The truth is, most families don’t realise how easily it can happen. But with a little planning, it’s entirely possible to keep far more of your wealth in the family, where it belongs.

It all starts with knowing what you can do to mitigate a tax bill for your loved ones – and crucially, the errors you need to steer clear of.

So, here are the four most common IHT mistakes we see — and how to avoid them.

Here they are:

The four costly Inheritance Tax mistakes most otherwise-successful families don’t even know they’re making

No doubt you already realise that the most effective way to address these issues is to make an enquiry with an independent financial planning firm. But whether or not you’ve worked with a financial adviser in the past, you may be unsure who in the local area can help – and that’s where we come in.

1. Overlooking your allowances

Every person has a £325,000 nil-rate band, meaning you can pass on this amount tax-free on your death. If you’re married or in a civil partnership, anything unused can transfer to your partner, doubling your allowance to £650,000.

And, if you leave a home to children or grandchildren, you can add the residence nil-rate band of up to £175,000 each. That means a couple could potentially pass on up to £1 million tax-free.

However, many families miss out because their estate is close to, or above, the £2 million threshold where the residence nil-rate band starts to reduce.

With these thresholds frozen until 2031, more estates will quietly creep into the tax net every year.

That’s why you need to take steps now to reduce the overall size of your estate and make the most of the tax-free allowances.

2. Making gifts too late

Giving money away while you’re still alive is one of the simplest ways to reduce IHT – but many families often leave it too late to make a real difference.

Each tax year, you can give up to £3,000 (2025/26) completely free of IHT. That exemption is individual, so you and your spouse or civil partner could give up to £6,000 between you.

And, you can carry any unused exemption forward from the previous tax year, meaning you could potentially pass up to £12,000 IHT-free in a single tax year.

Plus, you can make small gifts of up to £250 to as many people as you like.

Larger gifts may also escape tax, as long as you survive for seven years from the date of the gift.

The earlier you start, the more likely it is that these gifts will fall outside your estate, so time really does matter.

3. Forgetting about gifts from income

Few people know that you can make regular gifts out of surplus income which are immediately free from IHT.

This exemption is particularly useful for parents or grandparents helping their family with school fees or rising living costs.

The key is keeping good records. HMRC will want to see evidence that these payments were regular, came from income, not capital, and didn’t affect your standard of living.

4. Ignoring how rule changes could affect you

The IHT system is evolving, and failing to stay informed could cost your family dearly.

From April 2027, unused pensions are set to count towards your estate for IHT purposes, potentially adding 40% tax to what was once an IHT-free asset.

Likewise, under the new residence-based IHT regime, long-term UK residents and families with overseas ties could find that more of their wealth becomes taxable.

With thresholds frozen and property values rising, more families are finding themselves caught by IHT each year.

The good news?

Working with Kingston’s multi-award-winning financial planning team can help your family avoid a large bill

With the right planning – and timely advice – Inheritance Tax doesn’t have to be a 40% raid on your life’s work.

A few careful steps today can make a world of difference to what your family receives tomorrow.

And we can help when you reach out to us at Strategic Wealth Partners.

Founded by CERTIFIED FINANCIAL PLANNER™ Amyr Rocha Lima, he and his close-knit team support people in and around Kingston to make effective financial decisions.

Whether you want to build your wealth, retire on your terms, or protect your legacy for your loved ones, we empower our clients to achieve their life goals.

Read on to discover…

What successful individuals like you are saying about our support

All these real, local people took the time to get in touch with us about their concerns – and are in a much better position as a result.

"At last, I have my retirement plans in good shape."

Pete, Surrey

“I needed advice on retirement planning. Amyr helped clarify my options, and provided excellent information and updates throughout.

This is the first time I’ve used a financial adviser, and the experience was very enjoyable. At last, I have my retirement plans in good shape.”

“I now have one manageable pension fund.”

Simon, Buckinghamshire

“I was looking to combine several work pensions into one manageable fund. Amyr was clear about the risks, understood my personal and financial situation, and made sure that the right investment options were considered.

I now have one manageable pension fund, with easy access and control.”

“We’d recommend Amyr to anyone who needs advice.”

Phil, Oxfordshire

“We contacted Amyr looking for pensions and investment advice. Now, Amyr looks after our retirement savings and gives sound advice with real focus on our personal financial requirements.

He’s reliable and helpful. We’d recommend him to anyone who needs advice with financial matters.”

Successes like these are perfectly achievable, but the people who enjoy them have one common understanding:

To make your wealth tax-efficient, you need to take action today. And if you’re prepared to make that commitment, we might just be able to help.

Don’t miss out on…

A rare opportunity to solve all your Inheritance Tax concerns

The in-depth, one-on-one support our experts provide means we can only deal with a select number of clients at any one time. But we’re opening up a small handful of spaces for Kingston residents with IHT planning needs, and you can be one of them…

Simply register your interest by filling in the short form below. You’ll hear back within 48 hours.

Your first meeting is completely free of charge. And there’s no obligation whatsoever to sign up for any of our services if you decide we aren’t the right fit.

Leave it too late, and someone you know could take your spot. So, spend 60 seconds right now entering your details below, and take a positive first step towards securing your legacy for your loved ones.

No spam or sales messages – you’ll only be contacted about your enquiry.

Want to understand more first?

This TEDx Talk by Amyr Rocha Lima will boost your retirement know-how in minutes

If you want to gain a better grasp on your situation before reaching out to a qualified professional, you aren’t alone. There’s a financial knowledge gap among many people in your position, and that’s something we’ve taken steps to address…

In this short video, our multi-award winning financial planner Amyr Rocha Lima explains how much you actually need for retirement, and how to achieve it.

Watch Amyr’s TEDx Talk below:

And remember: simply register your interest when you’re ready for a free, no-obligation chat about your financial future. The clock is ticking…