Inheritance Tax
Built It. Earned It. Now Protect It
For many professionals across Aberdeen and Scotland, Inheritance Tax (IHT) is no longer just a concern for the ultra-wealthy.
You may already be closer to an exposure than you think, which is why it’s important not to overlook it when considering your long-term financial plans.
Rising property values, investment growth, business ownership, pensions and more complex remuneration structures mean an increasing number of senior professionals, particularly within the energy sector, may find themselves within the scope of Inheritance Tax. With IHT charged at up to 40% on estates above the available thresholds, a lack of planning could result in a significant tax liability being left for families to manage.
Why inheritance tax matters
Aberdeen has long been home to high-earning professionals working across oil and gas, renewables, engineering, legal, financial and executive leadership roles. Many have accumulated wealth through:
Property portfolios, including buy-to-let investments and second homes
Share schemes, bonuses and deferred compensation
Pension pots and private investments
Business ownership or equity stakes
Savings built during peak earning years in the energy sector
Some senior professionals in the North East may find themselves with estates that exceed the standard nil rate band rate of £325,000, particularly when factoring in family homes, pensions, and investments. Married couples and civil partners may benefit from combined allowances and residence nil-rate bands, potentially increasing thresholds significantly, but this often still isn’t enough for affluent families.
Does this sound like you? Let’s break it down….
Here are three profiles we see regularly among professionals across Aberdeen and the North East:
This scenario is illustrative only and does not constitute financial or tax advice. IHT rules are complex, subject to change, and depend on individual circumstances. The figures shown are hypothetical. Always seek regulated financial and legal advice before taking action.
This scenario is illustrative only and does not constitute financial or tax advice. IHT rules are complex, subject to change, and depend on individual circumstances. The figures shown are hypothetical. Always seek regulated financial and legal advice before taking action.
This scenario is illustrative only and does not constitute financial or tax advice. IHT rules are complex, subject to change, and depend on individual circumstances. The figures shown are hypothetical. Always seek regulated financial and legal advice before taking action.
Do you recognise yourself in any of these? The good news is that in each case, early planning makes a significant difference.
Common inheritance tax challenges for energy professionals
High-value estates built quickly
Many energy professionals have experienced accelerated earnings over the past 15 to 20 years. While this has enabled wealth creation, it often means estate planning has lagged behind.
A common scenario is a couple owning:
A primary residence in Aberdeen or Aberdeenshire
Investment properties
Large pension assets
ISAs, general investment accounts and company shares
Combined, these assets can easily push an estate into IHT territory.
Business and partnership interests
Business owners, consultants and directors may assume their business assets are fully protected from inheritance tax. However, business relief rules can be nuanced, and changes in legislation can affect eligibility. Structuring ownership correctly is essential.
Family complexity
Blended families, unmarried partners, children from previous relationships and international assets can all complicate estate planning and increase risk.
Six practical ways to reduce inheritance tax exposure
Inheritance tax planning is not about avoiding tax aggressively, it is about structuring wealth efficiently and ensuring more of your estate reaches your family.
Make use of gifting allowances
Review pension strategy
Consider trusts
Ensure wills remain up to date
Review business and ownership structures
Take a joined-up view of estate planning
At Welsh & Taylor Wealth, we work with energy professionals, senior executives and families across Aberdeen and Scotland to bring these areas together within a structured financial planning approach.
If your circumstances have become more complex over time, a review can help provide clarity on your current position and the options available to you.
For many professionals, inheritance tax planning is no longer something to “deal with later”. Whether you are approaching retirement, preparing to exit a business, managing intergenerational wealth or simply want clarity over your family’s future, proactive planning can make a significant difference.
At Welsh & Taylor Wealth, we work with energy professionals, senior executives and affluent families across Aberdeen and Scotland to create joined-up financial strategies that consider retirement, investment, pensions, protection and estate planning together. The result? Greater control, reduced tax leakage, and confidence that your wealth is passed on according to your wishes. Get the peace of mind you need.
Start the conversation early. Inheritance tax doesn’t need to become a forgone conclusion; it can be managed effectively with the appropriate advice. Planning ahead gives you far more options.
If your estate has grown over the years, or your financial circumstances have become more complex, now is the time to review your position.
Speak to Welsh & Taylor Wealth about inheritance tax and estate planning strategies tailored to high-earning professionals and families across Aberdeen, Aberdeenshire and Scotland.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only. All information is correct at the time of writing and is subject to change in the future.
Any references to changes introduced by the Finance Act 2026, including the inclusion of unused pension funds within the scope of Inheritance Tax, are based on legislation that has received Royal Assent and is now law. The eventual tax treatment will depend on individual circumstances and the detailed application of the legislation in practice. This information is provided for general guidance only and should not be relied upon as the sole basis for financial planning decisions.