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How Much Do Accountants Charge For Inheritance Tax in the UK?

Updated: May 27


Understanding Inheritance Tax and Accountant Charges in the UK (2024)

In 2024, the landscape of Inheritance Tax (IHT) in the UK has undergone significant changes that taxpayers need to be aware of. Understanding these changes is crucial for effective estate planning and minimizing tax liabilities.


How Much Do Accountants Charge For Inheritance Tax in the UK

Changes and Thresholds

The IHT in the UK is levied on the estate of a deceased person. As of 2024, the standard nil-rate band remains at £325,000, meaning no IHT is due on the first £325,000 of an individual's estate. For married couples or civil partners, this threshold effectively doubles to £650,000 when the first partner passes away and leaves their entire estate to the surviving partner.

Additionally, the residence nil-rate band, introduced in the 2017/18 tax year, has further increased the value of an estate that can be left tax-free to £500,000 for a single individual, comprising the existing £325,000 nil-rate band and a £175,000 main residence nil-rate band. This is especially applicable when a primary residence is passed on to direct descendants like children or grandchildren.


Exemptions and Reliefs

The UK's IHT system allows for various exemptions and reliefs that can significantly reduce tax liabilities. For example, gifts made more than seven years before death are generally exempt from IHT, with taper relief reducing the tax rate for gifts made between 3 and 7 years prior to death. Trusts, life insurance policies written in trust, and charitable donations also offer avenues for tax planning and reduction.


Accountant Charges for Inheritance Tax Planning

Who is An Inheritance Tax Accountant

An Inheritance Tax Accountant in the UK is a financial professional specializing in managing and advising on Inheritance Tax (IHT) liabilities associated with a person's estate. Their expertise lies in understanding complex tax laws, valuing assets, and implementing strategies to minimize IHT. They guide individuals through estate planning, use of exemptions and reliefs, gifting rules, setting up trusts, and ensuring compliance with HM Revenue & Customs. Their role is crucial in efficiently structuring an estate to reduce tax burdens, thereby maximizing the financial legacy left to beneficiaries. They provide peace of mind and financial optimization in estate planning and inheritance matters.

Role of Accountants in IHT Planning Professional accountants play a pivotal role in guiding individuals through the complexities of IHT planning. Their services include advising on the current tax laws, assisting in estate valuation, suggesting effective tax planning strategies, and ensuring compliance with all legal requirements.

Factors Influencing Accountant Charges The cost of hiring an accountant for IHT planning varies based on several factors:

  1. Complexity of the Estate: Larger estates with diverse assets, including international holdings, require more intricate planning, thus increasing the cost.

  2. Specialized Services: Services like trust formation, international tax planning, or advice on high-value asset transfers typically incur additional charges.

  3. Geographical Location: Accountants based in major cities or regions with a higher cost of living generally charge more.

  4. Reputation and Experience: Established firms with a strong track record in tax planning may command higher fees.


Average Cost Range

While it's challenging to pinpoint a specific fee without knowing the intricacies of an individual case, a general range for IHT planning services in the UK can be estimated. For basic advice and estate valuation, fees might start from a few hundred pounds. More comprehensive services involving complex tax planning strategies, estate structuring, and ongoing consultation could run into several thousand pounds. It's advisable for taxpayers to obtain quotes from multiple accountants to find a service that balances expertise with cost-effectiveness.


Navigating the UK's Inheritance Tax in 2024 requires an up-to-date understanding of the regulations and effective use of available exemptions and reliefs. Engaging a professional accountant can significantly ease this process, although their fees will vary based on the complexity of the task and the expertise required. As the IHT landscape continues to evolve, staying informed and seeking professional guidance remains crucial for efficient estate planning and tax optimization.

How Much Does an Inheritance Tax Accountant Charge on Average for the Probate Cases in the UK

The fees charged by an Inheritance Tax Accountant for handling probate cases in the UK can vary widely, depending on several factors like the complexity of the estate, the specific services required, and the professional's expertise and location. As of my last update, the average costs for probate services can range as follows:

  1. Simple Estates: For estates that are straightforward, with clear wills and no major tax issues, fees might range from approximately £1,000 to £5,000.

  2. Moderate Complexity Estates: For estates that have moderate complexity, such as those with multiple beneficiaries, various types of assets, or minor tax considerations, fees can range from about £3,000 to £10,000.

  3. Complex Estates: For more complex estates, especially those with business interests, international elements, significant tax planning requirements, or contentious probate, the fees can exceed £10,000, potentially reaching £15,000 or more.

It’s important to note that these figures are approximate and can vary significantly. Some accountants may charge a fixed fee for probate services, while others might bill based on an hourly rate or a percentage of the estate's value. Always it's advisable to get quotes from several accountants to understand the likely costs for a specific probate case.

What Are the Hourly Charges of An Inheritance Tax Accountant in the UK?

The hourly charges of an Inheritance Tax Accountant in the UK can vary widely based on several factors such as the accountant's level of experience, the complexity of the work involved, and the geographical location of the practice. As of my last update:

  1. Junior or Less Experienced Accountants: For those earlier in their career or with less experience in inheritance tax matters, the hourly rate might range from £75 to £150.

  2. Mid-level Experienced Accountants: Accountants with a moderate level of experience and expertise in inheritance tax typically charge between £150 to £250 per hour.

  3. Senior Accountants or Specialists: Highly experienced accountants, particularly those with specialization in complex inheritance tax and estate planning, can charge upwards of £250 to £500 per hour, especially in larger cities or prestigious firms.

It's important to remember that these are approximate figures and actual rates can differ. Rates in London and other major cities tend to be higher than in other parts of the UK. Additionally, some accountants might offer a fixed fee for certain services rather than an hourly rate, especially for more predictable tasks. As always, it's recommended to obtain detailed quotes from multiple professionals to get a clear understanding of the likely costs for your specific needs.

Advanced Inheritance Tax Strategies and Accountant Involvement


Advanced Strategies in Inheritance Tax Planning

Inheritance Tax (IHT) planning is a critical aspect of managing one's estate in the UK. As of 2024, there are several advanced strategies that individuals can employ to minimize the IHT burden on their heirs.

  1. Gifting Assets: One effective strategy is to gift assets during one's lifetime. In the UK, individuals can give away gifts up to the value of £3,000 each year without incurring IHT. Larger gifts may potentially be tax-free if the giver survives for seven years after making the gift, a rule known as the '7-year rule'.

  2. Trusts: Setting up trusts can be an efficient way to manage and distribute assets. Trusts allow for control over how assets are distributed and can offer IHT advantages. Different types of trusts, such as gift trusts and loan trusts, serve various purposes and can be tailored to individual needs.

  3. Life Insurance Policies: Life insurance policies, when written in trust, can provide a payout free from IHT. This can be a strategic way to provide for IHT liabilities without increasing the value of the estate.

  4. Charitable Donations: Gifts to charities are exempt from IHT, and if 10% or more of the net estate is left to charity, the IHT rate on the rest of the estate is reduced to 36% from 40%.

  5. Business Owner Exemptions: Business owners or shareholders may qualify for certain reliefs, such as Business Relief, which can reduce the value of the business or its assets for IHT purposes.


Role of Accountants in Inheritance Tax Planning

Professional accountants play a pivotal role in effective IHT planning. Their expertise is crucial in navigating the complexities of the tax system and implementing strategies that align with individual circumstances and goals.


Services Offered by Accountants:

  • Estate Valuation: Accountants assist in accurately valuing the estate, including property, investments, and other assets.

  • Tax Liability Assessment: They help determine potential IHT liabilities and identify applicable reliefs and exemptions.

  • Strategic Planning: Accountants can suggest and implement strategies such as gifting, setting up trusts, and other tax-efficient methods.

  • Compliance and Documentation: Ensuring that all necessary tax forms are correctly completed and submitted to HMRC is another critical service provided by accountants.


Choosing the Right Accountant

When selecting an accountant for IHT planning, consider their experience in estate planning, reputation, and the range of services they offer. It’s also beneficial to choose a professional who keeps abreast of the latest tax laws and regulations.


Cost of Accountant Services

The cost of hiring an accountant for IHT planning varies. It depends on the complexity of the estate, the specific services required, and the accountant's expertise and location. While some may charge a flat fee for certain services, others might bill hourly rates. It's advisable to discuss fees upfront and compare different accountants to find a balance between expertise and cost.


Inheritance tax planning in the UK requires careful consideration of various strategies and a deep understanding of tax laws. Advanced planning techniques such as gifting, trusts, life insurance policies, and charitable donations can significantly reduce IHT liabilities. Professional accountants are invaluable in this process, offering expertise in estate valuation, tax planning, and compliance. Their guidance can ensure that an individual's estate is managed efficiently and in a manner that minimizes the tax burden on heirs. Selecting the right accountant and understanding the cost implications are crucial steps in this process.

Accountant Fees for Inheritance Tax Planning in the UK


Understanding Accountant Fees

In 2024, the cost of hiring an accountant for Inheritance Tax (IHT) planning in the UK can vary widely. The fees are influenced by several factors, including the complexity of the estate, the specific services required, and the accountant's expertise and location.

Factors Affecting Fees

  1. Estate Complexity: Larger estates with diverse assets, international holdings, or business interests generally require more detailed and complex planning, which can increase the cost.

  2. Services Offered: The range of services provided, such as estate valuation, tax liability assessment, strategic planning, and compliance, can affect the fees.

  3. Expertise and Reputation: Established firms or accountants with a strong track record in IHT planning and estate management may charge higher fees.

  4. Geographical Location: Accountants based in major cities or regions with higher living costs tend to charge more.


Fee Structures


Accountants may use different fee structures for IHT planning services:

  1. Fixed Fee: Some accountants offer fixed-fee services for specific tasks or consultations. This can be a cost-effective option for straightforward cases.

  2. Hourly Rate: Other professionals may charge an hourly rate, which can vary depending on the accountant's experience and location.

  3. Tailored Quotes: In many cases, accountants provide tailored quotes based on an initial assessment of the client's needs and estate complexity.


Typical Fee Ranges

While it's difficult to provide specific figures without knowing the details of an individual case, a general estimate of accountant fees for IHT planning in the UK is as follows:

  • Basic IHT planning and consultation might start from a few hundred pounds.

  • Comprehensive services involving complex estate structuring, ongoing consultation, and implementation of tax-efficient strategies could range from a few thousand pounds upwards.


Seeking Quotes and Comparisons

It is advisable for individuals to obtain quotes from multiple accountants to find a balance between expertise, services offered, and cost. Comparing different professionals can help ensure that you receive the best value for the level of support and services required.


The cost of hiring an accountant for IHT planning in the UK in 2024 depends on various factors, including the complexity of the estate and the range of services needed. While fees can vary significantly, individuals should seek tailored quotes and consider both the accountant's expertise and the specific needs of their estate. Careful selection and comparison of accountants can ensure efficient estate planning and tax optimization at a reasonable cost.

Accountant Fees for Inheritance Tax Planning in the UK


How Inheritance Tax Accountants Can Help You Manage Inheritance Tax

Inheritance Tax (IHT) in the UK can be a complex and daunting aspect of financial planning. This tax is levied on an individual's estate after their death, depending on the value of their assets. With the current threshold for IHT set at £325,000, many estates fall into the taxable bracket, necessitating strategic planning to minimize liabilities. This is where Inheritance Tax Accountants come into play. They offer invaluable assistance in navigating the complexities of IHT, ensuring compliance, and optimizing the financial legacy left for beneficiaries.

Understanding Inheritance Tax

Before delving into the role of an accountant, it's essential to understand the basics of IHT. Any UK resident's estate, including their property, money, and possessions, is subject to IHT if the total value exceeds the threshold of £325,000. The standard tax rate is 40% on the amount over this threshold. However, there are exemptions and reliefs, such as the residence nil-rate band, which can significantly reduce the IHT liability.

Role of Inheritance Tax Accountants

  1. Estate Valuation: Accurately valuing an estate is the first step in IHT planning. Accountants assess the worth of various assets, including property, investments, and personal belongings. This valuation is critical in determining whether the estate falls within the IHT threshold and, if so, estimating the potential tax liability.

  2. Tax Planning Strategies: Professional accountants devise strategies tailored to individual circumstances. These strategies might include making gifts, setting up trusts, or redistributing assets to take advantage of exemptions and lower the estate’s taxable value.

  3. Utilizing Exemptions and Reliefs: A key aspect of their role is to identify and apply for applicable exemptions and reliefs. For example, gifts given more than seven years before death are usually exempt from IHT, and assets passed to a spouse or civil partner are typically outside the scope of IHT.

  4. Guidance on Trusts and Gifts: Accountants offer advice on the use of trusts and the implications of making gifts. Trusts can be an effective tool in IHT planning, allowing control over how and when assets are distributed. Likewise, understanding the rules surrounding gifts, including the seven-year rule and annual exemption limits, is vital.

  5. Compliance and Documentation: Ensuring compliance with tax laws and accurately completing necessary documentation is another area where accountants provide expertise. They help in preparing and filing relevant forms, such as the IHT400, and liaise with HM Revenue & Customs (HMRC) on behalf of the estate.

  6. Advising on Life Insurance Policies: Some accountants advise on life insurance policies written in trust, which can be used to cover IHT liabilities without increasing the value of the estate.

  7. Charitable Donations: They also guide charitable donations, which can reduce the IHT rate on some parts of the estate.

  8. Ongoing Consultation: Inheritance tax laws and thresholds can change, so ongoing consultation is crucial. Accountants help keep the estate's IHT plan up-to-date, adapting to new laws or changes in financial circumstances.

The Benefits of Hiring an Inheritance Tax Accountant

  1. Expertise and Knowledge: Inheritance tax accountants are well-versed in the UK's complex IHT legislation. Their expertise ensures that all available reliefs are utilized, and the estate is structured in the most tax-efficient manner.

  2. Peace of Mind: Dealing with IHT can be stressful, particularly during the bereavement period. Having a professional handle these matters offers peace of mind that the estate is managed correctly and efficiently.

  3. Financial Savings: Effective IHT planning can result in substantial tax savings, maximizing the inheritance passed to beneficiaries.

  4. Time Efficiency: Navigating the intricacies of IHT can be time-consuming. Accountants streamline the process, saving valuable time and effort.

How the Services of An Inheritance Tax Accountant Justify the Fee Charged by Him

In the intricate realm of financial planning, particularly in the context of inheritance tax in the UK, the expertise of an Inheritance Tax Accountant is indispensable. Their services, while seemingly costly at first glance, offer substantial value and justification for the fees charged. This article explores how the proficiency of an Inheritance Tax Accountant aligns with the fees incurred.

1. Expert Navigation of Complex Regulations:

Inheritance tax laws in the UK are intricate and constantly evolving. An accountant specializing in this area offers expert guidance through this labyrinth of regulations. Their up-to-date knowledge of allowances, exemptions, and thresholds is crucial for effective tax planning. This expertise is not just about compliance; it's about leveraging legal opportunities to minimize tax liabilities, a service that can save an estate significantly more than the cost of the accountant's fees.

2. Comprehensive Estate Valuation:

Accurate valuation of an estate is fundamental in determining potential inheritance tax liabilities. Inheritance Tax Accountants meticulously assess the value of assets, including property, investments, and personal possessions. This precision not only aids in calculating the tax due but also in identifying opportunities for tax reduction. Their skill in valuation justifies their fee, especially considering the financial implications of over or undervaluation in terms of tax liabilities.

3. Strategic Tax Planning:

Perhaps the most significant justification for their fees lies in strategic planning. Accountants provide tailored advice on reducing taxable estate size, such as through gifting, use of trusts, or charitable donations. This proactive approach can significantly lower the inheritance tax burden, ensuring more of the estate is passed on to beneficiaries. The financial benefits of effective tax planning can far exceed the cost of professional advice.

4. Avoiding Costly Mistakes:

The cost of errors in inheritance tax planning can be substantial. An accountant’s role includes ensuring that all documentation and filings are accurate and compliant with HMRC regulations. This precision is vital in avoiding penalties, additional tax charges, or prolonged legal disputes, which could be far more costly than the accountant's fees.

5. Peace of Mind and Time Efficiency:

Dealing with inheritance tax can be stressful and time-consuming. By entrusting this responsibility to a professional, executors and beneficiaries can focus on other important matters. The peace of mind and time saved by employing an expert is a significant aspect of the value offered by these professionals.

The services provided by an Inheritance Tax Accountant in the UK offer considerable value that often justifies, if not surpasses, the fees charged. Their role in navigating complex tax laws, providing precise estate valuation, implementing strategic tax planning, avoiding costly mistakes, and offering peace of mind and time efficiency, underscore their importance in the realm of inheritance tax planning. In essence, investing in their expertise is not just an expenditure but a strategic decision to preserve and maximize an estate's value for future generations.

Inheritance Tax Accountants are integral to managing IHT liabilities in the UK. Their role encompasses a range of services, from estate valuation to strategic tax planning and ensuring compliance with HMRC regulations. By engaging an accountant, individuals can ensure that their estate is managed efficiently, minimizing tax liabilities and securing their financial legacy for future generations.


1. What qualifications should an inheritance tax accountant have?

An inheritance tax accountant should ideally have qualifications such as ACA, ACCA, or CTA, indicating expertise in tax laws and estate planning.

2. How can I verify the credibility of an inheritance tax accountant?

You can verify the credibility by checking professional memberships, client testimonials, and reviews, and by confirming their qualifications and experience in inheritance tax matters.

3. What are the potential pitfalls of not using an inheritance tax accountant?

Potential pitfalls include incorrect tax calculations, missed exemptions or reliefs, penalties for non-compliance, and increased tax liabilities.

4. Can an inheritance tax accountant help with disputes or appeals with HMRC?

Yes, inheritance tax accountants can assist with disputes or appeals, offering expert guidance and representation to ensure compliance and fair treatment.

5. Are there specific software tools that inheritance tax accountants use?

Inheritance tax accountants may use specialized software for estate valuation, tax calculations, and compliance tracking, such as CCH or IRIS.

6. How do inheritance tax accountants stay updated with changes in tax laws?

They stay updated through continuous professional development, attending industry seminars, subscribing to tax journals, and being members of professional bodies.

7. What should be included in the initial consultation with an inheritance tax accountant?

The initial consultation should include a discussion of the estate's value, assets, potential liabilities, and any specific concerns or goals for tax planning.

8. How do inheritance tax accountants charge for ongoing estate management services?

They may charge a retainer fee, a percentage of the estate value, or hourly rates, depending on the complexity and scope of the services required.

9. Can inheritance tax accountants provide advice on international estate planning?

Yes, those with expertise in international tax laws can provide advice on managing assets in multiple jurisdictions to minimize tax liabilities.

10. How do inheritance tax accountants assist with the formation and management of trusts?

They provide advice on the type of trust, help set it up, manage its compliance, and ensure it is structured to optimize tax benefits.

11. What is the difference between a fixed fee and an hourly rate for inheritance tax services?

A fixed fee is a predetermined amount for specific services, while an hourly rate varies based on the time spent on the case, offering more flexibility but potentially higher costs.

12. Can an inheritance tax accountant help with gifting strategies to reduce tax liabilities?

Yes, they can advise on gifting strategies, including timing and amounts, to take advantage of exemptions and reduce the taxable estate.

13. What are the benefits of using an inheritance tax accountant for business owners?

They can help with business reliefs, valuing business assets, and planning for succession, which can significantly reduce tax liabilities for business owners.

14. How long does it typically take for an inheritance tax accountant to complete an estate evaluation?

The time frame varies based on the complexity of the estate but can range from a few weeks to several months.

15. What are the key documents an inheritance tax accountant will need?

Key documents include the will, asset valuations, financial statements, gift records, and any previous tax returns related to the estate.

16. How do inheritance tax accountants handle confidentiality and data protection?

They follow strict professional guidelines and regulations, ensuring all client information is securely stored and only shared with authorized parties.

17. Can inheritance tax accountants provide training or workshops for clients?

Yes, some accountants offer training sessions or workshops to educate clients on estate planning and tax optimization strategies.

18. What impact do charitable donations have on inheritance tax liabilities?

Charitable donations can reduce the inheritance tax rate on the rest of the estate, especially if 10% or more of the net estate is left to charity.

19. How can inheritance tax accountants help with life insurance policies?

They can advise on writing life insurance policies in trust to ensure the payout is not subject to inheritance tax and can be used to cover tax liabilities.

20. What are the typical challenges faced by inheritance tax accountants in estate planning?

Challenges include accurately valuing diverse assets, keeping up with changing tax laws, managing client expectations, and dealing with complex family dynamics.


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