Inheritance tax: what it is, and how you could beat it

Not many people realise this: you don’t have to be super-rich to be caught by inheritance tax (IHT).

Generally, 40% IHT could kick in once your estate is worth over £325,000 (your estate includes your home, savings, investments and also your ISA). There are various allowances, so a married couple could potentially leave £1 million IHT free. But where allowances other than the standard nil-rate band don’t apply, a £1 million estate could attract an IHT bill of up to £270,000. 

To put this in perspective, HMRC collected a record £5.4 billion in IHT in 2018/19. Indeed, the Office for Budget Responsibility forecasts IHT receipts to hit £6.3 billion in 2023/24.  

That said, there are ways to start to mitigate – even completely eliminate – IHT liabilities.

In this section, you will find a host of free resources that explain how IHT works and what you could do to mitigate it, as well as information on investment opportunities that experienced investors are increasingly using to pass on more of their wealth. 

Please remember, the opportunities covered in these pages are high risk and you could lose the amount you invest. Tax rules can change and benefits depend on circumstances.

Free inheritance tax planning resources

Guides

The basics of inheritance tax, and strategies to mitigate it, explained concisely in plain English in a free to download PDF

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How can you beat Inheritance Tax? How can you pass on more to your loved ones? Download your free guide to find out.

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Did you know that when you die the taxman could take 40% of your ISA in Inheritance Tax? How could you avoid that? Download our free report.

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Investing in assets that qualify for Business Property Relief (BPR) could help mitigate IHT. Find out how in this concise factsheet.

Articles

From an introduction to current rules to answers to common questions – read about inheritance tax

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Featured offers

Our favourite current opportunities: investments we think have genuine merit, whose managers we believe can deliver returns to investors. Read more.

IHT

  • Octopus Inheritance Tax Service

    The Octopus Inheritance Tax Service allows experienced investors to protect their assets from inheritance tax. It is the largest service of its kind, having attracted more than 12,000 investors and more than £2 billion in assets to date. Investors in the service will gain exposure to Fern Trading Limited, a large unquoted company with interests spread across more than 270 subsidiary businesses operating in a number of sectors which are important to the future of the UK economy, including healthcare, renewable energy, and fibre broadband. Read more, including portfolio examples, performance and risks – and apply online.

    Read more about Octopus Inheritance Tax Service
    Sector
    Property & renewables
    Portfolio size
    £2.0 billion
    Initial charge
    3.5%
    Saving via Wealth Club
    -
    Net initial charge
    3.5%
    AMC
    1.5%

AIM ISA

  • Octopus AIM IHT ISA

    Find out about Octopus's AIM Inheritance Tax portfolio, available inside or outside an ISA. Read about its aims, risks, fees & performance and apply online. Invest through Wealth Club for less than going direct – find out more…

    Read more about Octopus AIM IHT ISA
    Portfolio size
    £1.7 billion
    Average market cap
    £708.0 million
    Initial charge
    1.0%
    Saving via Wealth Club
    0.25%
    Net initial charge
    0.75%
    AMC
    2.0%