Inheritance Tax (IHT) continues to be one of the most complex and sensitive areas of financial planning for GP partners, practice owners and high‑earning medical professionals. With ongoing policy developments, consultations, and the continuing freezing of allowances from April 2026, IHT planning has become even more critical.
Although the headline IHT rate remains at 40%, changes to reliefs and the continued freezing of allowances are quietly increasing the number of estates exposed to tax.
Frozen IHT allowances and fiscal drag
The government has confirmed that the main IHT thresholds will remain frozen until April 2031:
- Nil Rate Band: £325,000
- Residence Nil Rate Band: £175,000
While these figures have stayed static, asset values have not. Rising property prices (particularly in London and the South East) mean many families are being drawn into the IHT net through what is often referred to as fiscal drag.
For married couples and civil partners, estates exceeding £1 million are now increasingly common. GP estates can reach this level sooner than expected due to the inclusion of:
- Practice or surgery premises
- Investment and rental properties
- Pension death benefits (which may be subject to IHT depending on scheme structure, trustee discretion and beneficiary nomination)
- Business and partnership interests
As a result, many GPs are facing substantial IHT liabilities for the first time.
Why GPs are disproportionately affected
GPs typically hold more complex asset structures than many other professionals. Alongside personal assets, estates may include:
- Surgery premises or shares in property‑owning entities
- Property investment portfolios
- Significant pension death‑in‑service or drawdown benefits
- Business interests through partnerships, limited companies or federations
- AIM or unlisted company investments
When combined with frozen thresholds and evolving relief rules, these assets can push estates well over IHT limits – often without any obvious warning during lifetime planning.
Proactive planning is no longer optional
With IHT thresholds fixed for the foreseeable future, early and proactive planning is now essential. Reviewing your position after death is simply too late as valuable reliefs and planning opportunities can be lost.
How Xeinadin can support you
Our specialist advisors work closely with GP partners and medical professionals to deliver practical, tailored IHT strategies that reflect both personal and professional circumstances.
Estate & asset review
We conduct a comprehensive review of your entire estate, including:
- Pension arrangements
- Property holdings
- Business and practice interests
- Personal assets
This allows us to identify current and future IHT exposure under the latest rules.
Restructuring for tax efficiency
- Where appropriate, we can help restructure assets to improve tax efficiency, including:
- Trust planning
- Efficient transfer of assets between spouses
- Planning for future generations
Each strategy is designed to balance tax mitigation with access, control and long‑term family needs.
Cashflow and scenario modelling
We use detailed modelling to illustrate how your IHT position may evolve over time, factoring in:
- Long‑term frozen thresholds
- Changes to reliefs and exemptions
- Business growth
- Property price appreciation
This helps you clearly understand both the risks and opportunities and make informed decisions with confidence.
When should you seek advice?
You may benefit from a conversation with our team if you:
- Own or part‑own GP surgery premises
- Have an estate approaching or exceeding £1 million
- Hold AIM shares or unlisted investments
- Expect to inherit or pass on significant assets
- Have not reviewed your will or estate plan in the last five years
- Are exploring trusts, gifting or restructuring options
Inheritance Tax planning is not just about reducing tax; it’s about protecting your family and preserving the wealth you’ve worked hard to build.
About the author
Natalie Sherwood
Natalie has specialised in the Healthcare industry for over 10 years with more than 25 years’ experience in personal tax. She is the trusted advisor to many of Xeinadin’s GP and Medical clients, supporting them with tax matters (including McCloud remedy considerations and Annual Allowance tax charges) and other complex issues at every step of their financial journey.
Connect with the author on LinkedIn: Natalie Sherwood | LinkedIn
Contact us
If you would like to understand how the upcoming changes affect you and ensure your estate plan remains robust, efficient and fit for the future, please contact us.
