The number of estates paying inheritance tax has risen by 15% in recent years, as the UK government’s receipts for the tax climbed to a record £5.4bn.
Figures released by HM Revenue & Customs last week showed the number of UK deaths resulting in an IHT charge has been rising steadily since 2009/10 but between 2015/16 and 2016/17 they increased by 3,600 to a total of 28,100.
The increase in the number of estates falling into the scope of IHT is partially due to rising asset values, particularly property prices. In addition to which, the government freezing the £325,000 nil-rate band threshold, above which 40% tax is charged on estates, doesn’t really help!
If you would like to discuss IHT and/or estate planning, call our dedicated Trusts & Estates team on 01788 539000.