People planning to pass on their estate may be able to trim off £70,000 from their inheritance tax bill by taking advantage of a little-known rule.

There is a standard £325,000 nil rate allowance for inheritance tax which allows a person to pass on this much of their estate tax-free, but there are other nil rate allowances available.

Neil Rayner, head of advice at wealth firm True Potential, said: “A little-known tip for minimising your inheritance tax bill is taking advantage of downsizing…