Heritance Advisory — IHT Restructuring for Property Company Owners

The Problem

The IHT bill nobody talks about

You built a property portfolio. You put it in a limited company — probably on your accountant's advice. It was the right move for income tax and mortgage purposes.

But here's what most property investors don't realise: non-trading company shares do not qualify for Business Property Relief. HMRC treats your property company as an investment holding, not a trading business.

That means the full value of your shares sits in your estate, subject to 40% inheritance tax on death.

Your accountant may have flagged this. But very few people offer a clear, practical solution.

We do.

The cost of doing nothing

Company value £1,500,000

IHT rate 40%

BPR available? No

IHT bill on second death £600,000

Your family loses £600,000

The Solution

How we reduce your IHT bill

We restructure your company's shareholdings to move value out of your estate — legally, permanently, and without changing how your properties are managed day to day.

We assess your situation

We review your company structure, the value of the portfolio, your family situation, and calculate your current IHT exposure. You'll see exactly what you stand to lose — and what we can save.

We restructure the shares

Our solicitors amend the company's articles of association, create new share classes, and bring family members or trusts in as shareholders. Each holding becomes a minority shareholding — attracting a valuation discount for IHT purposes.

Your family keeps more

The transferred shares leave your estate over time. The remaining shares attract a minority discount. Nothing changes day to day — you're still a director, you still manage the properties, your tenants and letting agent stay the same.

See Your Saving

IHT Restructuring Calculator

Enter your company details to see the potential inheritance tax saving from restructuring.

Company Value (£) Total property portfolio value

Current Shareholders Typically 2 (husband & wife)

After Restructuring Including children / trusts

Minority Discount

20% 50% 35%

Valuation discount on minority shareholdings — depends on restrictions in the articles

IHT Before

£600,000

At 40% on full value

IHT After

£156,000

After restructuring

Your Saving
£444,000
74% reduction

Conservative (20% discount)

£360,000

Optimistic (50% discount)

£480,000

Indicative figures only. Actual savings depend on individual circumstances, HMRC's acceptance of the discount level, and the 7-year rule for potentially exempt transfers. Nil rate bands excluded for simplicity. This is not financial or tax advice.

Why Heritance Advisory

What makes us different

We don't sell investment products. We don't charge by the hour. We restructure your company and save you tax.

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One fee. No ongoing charges.

You pay a single fixed fee for the entire restructuring. No annual management charges, no percentage of assets, no hidden costs. The fee typically represents 3–6% of your total IHT saving.

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One point of contact.

You deal with us. We instruct the solicitors, coordinate the trusts, manage the articles of association. You don't need to find or manage multiple professionals.

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Established law. Not a scheme.

Minority shareholding discounts are well-established in UK tax law. We work with leading law firms to create genuine, defensible structures with real restrictions — not paper arrangements.

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Nothing changes day to day.

You're still a director. You still manage the properties. Your letting agent stays the same. Your accountant does the same accounts. The only thing that changes is who owns the shares — and how much IHT your family will pay.

Common Questions

Frequently asked questions

The questions our clients ask most often.

Is this legitimate? Will HMRC challenge it?

Yes, it's legitimate. Minority shareholding discounts are well-established in UK tax law and are accepted by HMRC in principle. The key is that the structure creates genuine restrictions on the shareholdings — these are real changes to the company's articles of association, drafted by qualified solicitors at established law firms. We always encourage clients to discuss the restructuring with their own accountant for additional reassurance.

Do I lose control of my properties?

No. You remain a director of the company. You continue to manage the properties exactly as you do now. Your letting agent, your tenants, and your accountant all stay the same. The restructuring changes who owns the shares and how they're valued for IHT purposes — it doesn't change how the company operates day to day.

What are the risks?

The main risk is that HMRC may argue for a lower minority discount than expected. However, even a conservative discount of 20% still produces a meaningful saving. The share transfer itself — moving shares to family members or trusts — reduces your estate regardless of the discount level. We also recommend appropriate insurance to cover the 7-year potentially exempt transfer period.

How much does it cost?

We charge a single fixed fee based on the complexity of the restructuring. This covers everything — the corporate solicitor, the trust solicitor, and our coordination and advisory work. The fee typically represents 3–6% of the total IHT saving. We'll give you an exact quote after our initial consultation, before you commit to anything.

How long does it take?

Most restructurings are completed within 6–8 weeks from the point of instruction. The exact timeline depends on the complexity of the structure and the number of trusts required. We keep you informed throughout and handle all coordination with the solicitors.

What about the 7-year rule?

When shares are transferred to family members, they are treated as potentially exempt transfers (PETs). If you survive for 7 years, the transfer is completely free of IHT. If you don't, the transfer may still benefit from taper relief after 3 years. We can also arrange appropriate insurance cover through our financial planning partners to protect against this risk during the 7-year period.

I'm not sure trusts are for people like us

Trusts aren't just for the ultra-wealthy. A trust is simply a legal structure that holds assets on behalf of beneficiaries. If you have children under 18, or you want to protect shares from future divorce or creditor claims, a trust is a practical solution. You remain in control as a trustee. Most of our clients felt the same way before we explained how trusts work — and wondered why they hadn't done it sooner.

Can my accountant verify this?

Absolutely — and we encourage it. We're happy to speak with your accountant directly to explain the structure. The legal work is done by established UK law firms, and the tax treatment follows well-established principles. Your accountant will be able to confirm that the structure is sound.

Your property company shares are in your estate. We fix that.