Inheritance tax revenue at highest level
Inheritance tax drew £4.7bn from UK consumers in the 2016/17 tax year, and is estimated to increase by a third more over the next five years.
Inheritance tax revenues are nearly £5 billion a year for the first time. People are failing to make provision for inheritance tax, and it’s costing them heavily.
Why is inheritance tax rising?
HM Revenue & Customs has attributed rising IHT receipts primarily to rising asset values, with residential property making up around a third of the total value of taxpaying estates. As the average value of estates rises, an increasing number of estates are now valued over the basic IHT nil rate band, which has been frozen at £325,000 since April 2009. You may also benefit from the extra Residence Nil Rate band, but there is still frequently a substantial inheritance tax bill to pay.
There are things you can do. These may involve a financial advisor as well as a solicitor, but a good place to start is with your solicitor.
Contact us to discuss your options: