It is possible for most Britons to significantly reduce the impact of inheritance tax on their estate by undertaking some simple actions, according to one group.

Bradford and Bingley has published a list of tips on reducing an individual's tax burden, among which is advice on minimising the effects of inheritance tax.

Currently any Briton with an estate, including property, valued at more than £300,000 will find that all value above this sum is taxed at 40 per cent.

However, "there is a lot you can do yourself to knock essential pounds off your tax bill", the company suggests.

Bradford and Bingley recommends consulting an advisor on making gifts to friends or family, leaving money to charities or drawing up a will specifying how the estate should be distributed.

"With the help of an expert you could make substantial savings as they can look at your financial situation as a whole and put together a plan for how you can really mitigate tax", it continues.

The firm also asserts that many consumers are not taking advantage of the tax benefits of their pension plans.

Research published over the winter by the mortgage provider suggested that 85 per cent of retirees wanted to stay in their own homes, with more that one in four preferring to return to work than to downsize.