Calculating Inheritance Tax: A step‑by‑step guide for advisers

Event description

Inheritance Tax (IHT) continues to affect a growing number of estates, and advisers are increasingly required to navigate the complex rules that determine an individual’s liability. Before exploring any planning strategy, the essential first step is accurately assessing the size of the client’s IHT exposure. This involves understanding a wide range of factors, including exemptions, reliefs, transferable allowances and the interaction between the nil‑rate bands.

From April 2027, most pensions will also fall within the IHT calculation for the first time, adding a new layer of complexity to an already intricate process.

In this session, Senior Technical Manager Neil Macleod provides a clear, structured walk‑through of the steps involved in calculating an individual’s IHT liability—both under the current rules and within the forthcoming pension reforms.

The event qualifies for up to 90 minutes of Structured CPD accredited by CII. By the end of the session you will be able to: 

• Identify and explain the key components that form part of the UK Inheritance Tax calculation.
• Apply a step‑by‑step methodology to determine an individual’s IHT liability using current legislation.
• Describe how the IHT treatment of pensions will change from April 2027 and outline how this impacts future calculations.

Neil Macleod  
Senior Technical Manager, M&G

Neil has worked in financial services for over 15 years. Before joining M&G, Neil worked in various roles within a Bank and IFA environment. This has involved providing financial advice to individuals as well as support for advisers in paraplanning. 

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.