Equity Release and Its Impact on Inheritance

Canon Independent Mortgage Services Limited12 Jan, 2026Business

Releasing the home’s equity reduce the estate value. On occasion, beneficiaries may have to pay a lower amount of inheritance tax. Proper planning might even allow the estate value to go below even the IHT threshold. However, it is worth noting that the main residence usually comes with an additional IHT allowance. It is possible to notice a fixed amount with a nil band added. It means that a couple may even have to leave their family home behind before IHT becomes payable.