Inheritance Tax Planning in Blundellsands & Crosby: Protecting Family Wealth on Liverpool’s Coastal Idyll
- Belgravia Capital
- Jun 10
- 6 min read
Updated: Jun 12
Stretching along Liverpool’s northern coastline, the elegant suburbs of Blundellsands and Crosby offer residents the perfect balance of seaside living and city convenience.
With wide avenues, period homes, and panoramic views across the Mersey Estuary, these areas are among the most desirable addresses in the Liverpool City Region.
But with success comes risk - and in Blundellsands and Crosby, that risk increasingly comes in the form of inheritance tax (IHT).
Many families living in Marine Crescent, Hall Road West, The Serpentine, and surrounding areas now find that rising property values and frozen tax thresholds have brought their estates firmly into inheritance tax territory.
Without careful planning, 40% of family wealth could be lost to HMRC forcing the sale of cherished homes and assets.
At Belgravia Capital Wealth Management, we specialise in helping coastal families across Sefton to structure their estates effectively, ensuring more of their hard-earned wealth passes to the next generation.
In this guide, we explain why inheritance tax is now a growing issue in Blundellsands & Crosby and how to safeguard your estate.
Why Inheritance Tax Is a Growing Issue in Blundellsands & Crosby
Inheritance tax was once considered a problem for the ultra-wealthy. But in affluent Merseyside suburbs like Blundellsands and Crosby, this is no longer the case.
Rising house prices and frozen tax thresholds have created a perfect storm:
Detached homes on Marine Crescent and Hall Road West now frequently sell for £1 million to £2 million+.
Period properties and modern builds on The Serpentine, Burbo Bank Road, and across central Crosby regularly exceed £800,000 to £1.5 million.
Long-term homeowners, who may have bought properties decades ago for a fraction of their current value, are often unaware of their IHT exposure.
Many local families also hold substantial pensions, savings, and investment portfolios, easily pushing total estate values over £2 million.
Yet the government’s IHT thresholds have been frozen since 2017:
The nil-rate band remains at £325,000 per person.
The residence nil-rate band (for passing on the family home) adds a further £175,000 per person, but this tapers away for estates above £2 million.
For married couples or civil partners, this gives a combined allowance of £1 million with anything above this taxed at 40%.
As property values continue to rise, more Blundellsands and Crosby estates are falling into this tax net, often without proper planning.
A Typical Example
Consider a couple who bought a £1.6 million home on Marine Crescent 25 years ago for just £300,000. Today, their estate also includes:
£300,000 in pensions.
£250,000 in ISAs and savings.
£250,000 in art, jewellery, and personal possessions.
The total estate is now worth £2.4 million.
Because the estate exceeds £2 million, the residence nil-rate band starts to taper away, potentially disappearing altogether at £2.35 million.
In this example, the couple would be left with just the £650,000 combined nil-rate band.
This means £1.7 million of their estate would be subject to 40% inheritance tax, resulting in a potential IHT bill of £660,000.
Without careful planning, their heirs may be forced to sell the family home or other treasured assets to cover this bill.
Why Blundellsands & Crosby Families Must Plan Early
Many local families are in a familiar position:
Asset-rich but cash-poor — with wealth tied up in a valuable family home, but limited liquidity to cover a future inheritance tax bill.
Keen to keep the family home within the family — but unaware of the financial risk posed by IHT.
Uncertain how to use lifetime gifting, trusts, pensions, and insurance effectively.
The key is to plan early. With the right strategies, much of your inheritance tax liability can be reduced — and in some cases, eliminated altogether.
At Belgravia Capital Wealth Management, we help Blundellsands and Crosby families take proactive steps to safeguard their legacy.
Inheritance Tax Planning Strategies for Blundellsands & Crosby Families
Lifetime Gifting
Gifting is one of the simplest and most effective ways to reduce the value of your taxable estate.
You can give away £3,000 per year tax-free and carry forward one unused year.
You can also make small gifts of up to £250 per person per year.
Larger gifts are treated as potentially exempt transfers — provided you survive seven years after making the gift, they fall outside your estate for IHT purposes.
We help families gift:
Surplus income — this can be gifted tax-free without using the seven-year rule if structured correctly.
Cash and investments.
Personal items such as jewellery, art, and collectibles.
Property interests, where appropriate.
Effective gifting can help keep your estate below critical thresholds — particularly the £2 million taper point.
Using Trusts to Protect Wealth
Trusts enable you to move assets out of your estate while retaining control over how they are used.
Common trust structures we advise on include:
Discretionary trusts — for flexibility and long-term planning.
Bare trusts — suitable for gifts to adult children.
Interest-in-possession trusts — providing income to a surviving spouse while protecting capital for children.
Trusts are particularly valuable when used to retain the residence nil-rate band for estates hovering around the £2 million taper threshold.
Whole-of-Life Insurance to Cover the Tax
A whole-of-life insurance policy, written in trust, provides a tax-free lump sum to cover your IHT bill.
This ensures that your heirs will not have to sell property or prized assets simply to pay HMRC. It is an ideal solution for families in Blundellsands and Crosby with valuable but illiquid estates.
Pension Planning
Defined contribution pensions are a highly tax-efficient way to pass on wealth.
Pensions sit outside your estate for inheritance tax purposes.
If you die before age 75, your pension can be inherited tax-free.
If you die after 75, your beneficiaries pay income tax on withdrawals — but still no inheritance tax.
Ensuring your pensions are structured correctly — and that nomination forms are up to date — is critical. We frequently help families across Sefton optimise pensions as part of an overall IHT strategy.
Business Property Relief (BPR)
If you own a qualifying business or AIM-listed shares, you may be eligible for Business Property Relief — reducing IHT on those assets by up to 100%.
However, from April 2026, BPR will be capped at £1 million per person — so now is the time to plan.
Common Mistakes to Avoid
Many families in Blundellsands and Crosby make the same inheritance tax mistakes:
Underestimating estate value
It is easy to overlook the full current value of property, pensions, ISAs, life insurance, art, and personal possessions.
Outdated wills
Many older wills do not take into account modern tax allowances such as the residence nil-rate band.
Ignoring the £2 million taper
With careful planning, families close to this threshold can retain valuable tax reliefs.
Holding life insurance outside of trust
This increases your taxable estate unnecessarily.
Failing to optimise pensions
Pensions are one of the most powerful IHT planning tools — but often overlooked.
Why Local Expertise Matters
Blundellsands and Crosby present unique inheritance tax challenges:
Coastal homes that have appreciated dramatically in value.
Multi-generational family wealth — often concentrated in property.
Estates that are asset-rich but lack liquidity.
Families unaware they have slipped into the IHT danger zone.
At Belgravia Capital Wealth Management, we provide bespoke inheritance tax planning tailored to families in Blundellsands, Crosby, and across the Sefton coastline.
We understand the local property market, the dynamics of coastal wealth, and the importance of keeping family homes and legacies intact.
Next Steps for Blundellsands & Crosby Families
If you own a high-value home in Blundellsands or Crosby — especially in:
Marine Crescent.
Hall Road West.
The Serpentine.
Burbo Bank Road.
Central Crosby conservation areas.
… you are almost certainly exposed to inheritance tax risk.
Now is the time to act:
Have your full estate professionally valued.
Review and update your will.
Consider lifetime gifts and trust structures.
Explore insurance to provide liquidity.
Structure pensions optimally.
Plan around upcoming changes to Business Property Relief.
Conclusion: Protect Your Coastal Legacy
Inheritance tax is no longer a problem reserved for the wealthy elite. In Blundellsands and Crosby, it is a growing threat to the estates of long-standing families and new residents alike.
But with smart, proactive planning, you can ensure your wealth passes to your loved ones — not to HMRC.
At Belgravia Capital Wealth Management, we help Sefton families take control of inheritance tax with clear, effective strategies.
Contact us today to begin protecting your legacy.
020 3916 5954
