Inheritance Tax Planning In Solihull
Interitance tax planning can be overwhelming and confusing. We aim to explain the process in a simple, jargon-free way
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Every year, a growing number of estates that would once have escaped inheritance tax entirely now face a bill running into tens of thousands of pounds, largely because the tax thresholds have stayed fixed while property and investment values have continued to rise. If your estate includes a family home in Solihull that has grown considerably in value over the years, you may be closer to that threshold than you realise. The good news is that with enough time, there are legitimate and well established ways to reduce what your family pays.
At Pearcelegal Solicitors, we help individuals and families across Solihull and the West Midlands plan for inheritance tax under the law of England and Wales, working alongside your accountant or financial adviser where you already have one. Some clients come to us wanting a full review of their position from scratch. Others have a specific question, perhaps about gifting a property to their children or making the most of allowances before a Budget change takes effect and want focused advice on that single issue.
We approach inheritance tax planning as something that should fit naturally within your wider estate plan, rather than as a standalone exercise disconnected from your will and other arrangements. The reliefs and exemptions available depend heavily on timing, so the earlier a conversation starts, the more options remain open. A plan put together years in advance of when it is needed almost always achieves more than one assembled in a hurry.
Having advised Solihull families on inheritance tax and estate planning for over 40 years, we have seen how much difference early planning makes, and equally how often opportunities are lost simply because nobody raised the subject in time. We explain the reliefs that might apply to your situation clearly, including the nil-rate band, the residence nil-rate band, lifetime gifting rules, and business or agricultural relief where relevant, without overwhelming you with more detail than you actually need.
You will work with a solicitor who takes the time to understand your full financial picture and family circumstances before recommending anything, rather than pushing a one-size-fits-all solution. We coordinate closely with any accountant or financial adviser you already work with, so your legal and financial planning point in the same direction rather than working against each other.
If you are concerned about how much inheritance tax your family may face or wish to plan your affairs to minimise tax requirements, contact Pearcelegal on 0121 270 2700 today to arrange a free 30 minute consultation with a solicitor. You can also fill in our contact form.
Our tax planning services
We support individuals and families across Solihull and the West Midlands with a full range of inheritance tax planning services, including:
- Reviewing your estate to assess your likely inheritance tax exposure
- Advising on the nil-rate band and residence nil-rate band allowances
- Structuring lifetime gifts to reduce future tax liability
- Advising on business and agricultural property relief
- Setting up trusts as part of a tax-efficient estate plan
- Coordinating tax planning with your will and lasting powers of attorney
- Advising married couples and civil partners on transferable allowances
- Reviewing existing arrangements after a change in tax legislation
Every individual currently has a nil-rate band of £325,000 that can pass free of inheritance tax under the Inheritance Tax Act 1984, plus a residence nil-rate band of £175,000 where a qualifying home passes to direct descendants. Married couples and civil partners can transfer any unused allowance between them, giving a surviving spouse up to £1 million combined, and these thresholds remain frozen until April 2030.
For business owners, the rules changed further from April 2026, with agricultural and business relief now capped at 100 percent on the first £2.5 million of qualifying assets and only 50 per cent above that threshold, a change that has made early advice considerably more valuable for family businesses and farms.
Why choose Pearcelegal?
- Families want reassurance that their tax planning has actually been thought through properly, not assembled from a generic checklist. Pearcelegal has advised Solihull families on inheritance tax for over four decades, keeping pace with legislative changes as they happen.
- You work directly with the solicitor advising you, who understands your full circumstances rather than treating tax planning as a one-off transaction.
- We respond promptly to new enquiries, usually within 24 to 48 hours, since tax planning often benefits from starting a conversation sooner rather than later.
- Fees are agreed clearly before work begins, so you understand the cost of putting a tax plan in place before committing to it.
- Our long-standing place in the Solihull community means we understand the types of assets, businesses, and family structures common to the area, and we tailor our advice accordingly.
Get in touch
To discuss reducing your family's future inheritance tax bill, contact Pearcelegal on 0121 270 2700 today to arrange a free 30 minute consultation with a solicitor. You can also fill in our contact form.
Frequently asked questions
Do I need a solicitor to help me with tax planning?
We recommend working with a solicitor to navigate the rules and regulations. An experienced solicitor can help you to identify opportunities and threats to your income and assets. Tax planning can also be combined with your Will to ensure you do not pass on an excessive tax burden with your inheritance.
Can anyone benefit from tax planning?
If you plan to leave money or assets in your Will, tax planning can help to lessen the tax burden on your beneficiaries.
Is tax planning legal?
Yes, tax planning is a completely legal practice. It is not the same as tax evasion. Tax planning involves working within tax regulations to maximise your position. If you are planning to use tax planning to conceal income, this would be considered illegal.
What is the importance of tax planning?
Tax planning allows you to make the most of your tax-free allowances and helps to avoid burdening your family with a tax headache when they inherit your estate. It’s also helpful to ensure that you remain compliant with local tax regulations.
Will you work with my existing accountant or financial adviser?
Yes, we regularly coordinate with clients' existing accountants and financial advisers to make sure legal and financial planning work together rather than in isolation.
Do I need to plan if my estate is under the threshold?
An estate below the combined nil-rate band and residence nil-rate band generally has no inheritance tax to pay, though it is still worth reviewing your position if your estate is likely to grow in value or your circumstances change.
When should I start inheritance tax planning?
Planning works best when started well before it becomes urgent, since several of the most effective reliefs, including the seven-year gifting rule, only work if there is enough time left to use them.
Can I give away my home to reduce inheritance tax?
Yes, but only if you no longer benefit from the property afterwards, since continuing to live in a gifted home without paying a market rent is treated as a gift with reservation of benefit and remains in your estate for tax purposes.
What planning options reduce inheritance tax?
Lifetime gifts, trusts, and business or agricultural relief are the main tools used to reduce a liability, with gifts made more than seven years before death generally falling outside the estate entirely.
What is the current inheritance tax rate?
The standard rate of inheritance tax in England and Wales is 40 per cent on the value of an estate above the available nil-rate bands, reduced to 36 per cent where at least 10 percent of the net estate is left to charity.
How much can I pass on tax free?
A single homeowner can currently pass on up to £500,000 tax free through the combined nil-rate band and residence nil-rate band, while a surviving spouse or civil partner can potentially access up to £1 million where allowances are transferred between them.
Our specialists in Inheritance Tax Planning
Graham Pearce
Director and Head of Department for Conveyancing, Commercial and Charity
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