Fact sheet
Reduce Your Inheritance Tax
When you pass away, Inheritance Tax can cost your family up to 40% of the wealth you leave them. As a business owner there are legal ways to mitigate this, protect your legacy and free up funds to invest and grow.
What you can do
Protect your legacy
Four legal ways business owners reduce Inheritance Tax - tap any card to explore it.
Reduce your Inheritance Tax
Put a tax-efficient structure in place to help reduce the 40% charge, within HMRC rules.
Inheritance Tax mitigationProtect and invest company profit
Move retained profits into a Family Investment Company to grow wealth and help reduce IHT over time.
How a FIC worksBuild wealth, protect your legacy
Structure your wealth so more passes to your family and less is lost to HMRC.
Wealth and successionPass on shares to the next generation
Use the seven-year rule and a FIC to pass future growth to your children, while keeping control.
The FIC guideThe facts
Ten things to know about Inheritance Tax
The essentials, at a glance - including the latest changes.
The 40% charge
Inheritance Tax is charged at 40% on the value of your estate above the nil-rate band.
The nil-rate band
GBP 325,000 per person, plus a GBP 175,000 residence nil-rate band, frozen to April 2030.
Couples
Allowances transfer between spouses and civil partners - up to GBP 1m for a couple.
The seven-year rule
Gifts made more than seven years before death normally fall outside your estate.
Business Property Relief
From April 2026, 100% relief is capped at the first GBP 2.5m of qualifying business assets (50% above).
The Family Investment Company
A FIC helps pass company wealth to the next generation while you keep control.
Pensions are changing
From April 2027, most unused pension funds fall within the estate for IHT - so plan with up-to-date advice.
Protect surplus cash
Moving surplus company cash into the right structure helps protect it for your family.
Keep control
Structures like a FIC let you reduce IHT over time without losing control of your assets.
Plan early
The earlier you plan - especially gifts - the more you can mitigate, within HMRC rules.
How we help
Set up and fully supported
TLPI handles the heavy lifting so you can focus on protecting your family.
Why TLPI
Trusted expertise, lasting impact
Where to go next
Explore the detail
Every link goes straight to the right place on the TLPI website.
Talk through your Inheritance Tax strategy
Book a free, no-obligation consultation and one of our experienced consultants will help you protect your legacy and reduce the Inheritance Tax your family could face.
Book your free consultation