Inheritance Tax on Property
For many UK families, the family home is now the primary driver of inheritance tax exposure.
Your Situation
If your estate includes property and you are concerned about an inheritance tax liability…
House price growth over the past two decades has brought inheritance tax into scope for many families who never expected to face it. The nil rate band (£325,000 per person) has been frozen at its current level since 2009 and is set to remain so until at least 2030 — while property values across the UK have continued to rise. Families with a modest home and some savings can now face a meaningful IHT liability that could have been significantly reduced with timely planning.
Castle Stonebridge helps homeowners across the UK understand their property-related IHT exposure and take practical steps to address it. We explain how the residence nil rate band works, when it applies, and where it does not — and identify strategies that can reduce the IHT liability without requiring significant lifestyle changes.
Questions We Answer
"Is my home subject to inheritance tax, and how much of it?"
The answer depends on your estate's total value, the available nil rate bands, and any previous gifts — professional advice clarifies the exposure.
"Do I qualify for the residence nil rate band?"
The RNRB is an additional £175,000 allowance per person — but it has conditions and tapers away for larger estates.
"Can I put my house in trust or give it to my children to avoid IHT?"
Transferring property has complex IHT, CGT, and practical implications — some strategies do not work as intended.
"What happens if my estate is worth more than £2 million?"
The residence nil rate band tapers away at £2 million — estates above this threshold face higher effective IHT rates.
"Could downsizing my property reduce my IHT liability?"
Downsizing and spending or gifting the released equity can be an effective strategy — and the downsizing addition preserves the RNRB.
Our Approach
How We Guide You
Estate and property IHT assessment
We calculate your current IHT exposure, including property, savings, investments, and previous gifts, to give a clear picture of the liability.
Nil rate band and RNRB analysis
We confirm which nil rate band and residence nil rate band allowances are available to you and your spouse, and whether conditions for the RNRB are met.
Property IHT strategy design
We identify appropriate strategies to reduce property-related IHT — which may include gifting, downsizing, trust structures, or investment-based approaches.
Legal and financial coordination
We coordinate with your solicitor to ensure any property planning strategies are implemented correctly and reflected in your will.
Key Considerations
What you should know before making a decision
- The nil rate band is £325,000 per person (frozen until at least 2030). The residence nil rate band adds up to £175,000 per person if a main residence is left to direct descendants — giving couples up to £1 million combined before IHT applies.
- The residence nil rate band tapers away at £1 for every £2 by which the estate exceeds £2 million. For a couple with an estate of £2.5 million, the RNRB may be reduced or eliminated entirely.
- Giving your home away while continuing to live in it (a gift with reservation of benefit) does not avoid IHT. The property remains in your estate unless you pay a full market rent to the new owner.
- Transferring a property to children may trigger capital gains tax on any growth since acquisition. This is a significant consideration for properties that have increased substantially in value over many years.
Talk to an independent adviser — no obligation
Castle Stonebridge is FCA-regulated and wholly independent. We are not tied to any provider, which means our advice is guided solely by what is right for you.
Book a Free ConsultationYour initial consultation is completely free and carries no obligation.
Common Questions
Frequently Asked Questions
Ready to get the right advice for your situation?
Your free initial consultation is completely without obligation. We will listen, understand your specific circumstances, and tell you honestly whether and how we can help — before we discuss fees.
advice@castlestonebridge.co.ukCastle Stonebridge Limited is an Appointed Representative of Rosemount Financial Solutions (IFA) Limited, which is authorised and regulated by the Financial Conduct Authority. Rosemount Financial Solutions (IFA) Limited is entered on the Financial Services Register under reference 535515. Tax treatment depends on individual circumstances and may change.
Regulatory Notice: Estate and inheritance planning is not regulated by the Financial Conduct Authority.