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27 Sep 2022
New data from HMRC show the Treasury’s inheritance tax (IHT) receipts have doubled since 2012/13.
Source: HMRC
Of all the various taxes levied in the UK, IHT is one of the most peculiar:
New figures from HMRC show that in 2021/22 the IHT receipts rose by nearly 14%, with the average IHT bill faced by that small minority of taxpaying estates with a value of just over £250,000. One reason for the increase is the fact that the nil rate band is frozen. The freeze started in 2009 and its term has regularly been extended – the “thaw” is not now due to arrive until April 2026. With inflation surging, over three more years of freeze will drag more estates into the IHT net.
If IHT is a concern for you, there are a variety of ways to reduce its impact on what your children or grandchildren will inherit. It will not surprise you to learn that with such a misunderstood tax, the starting point is professional advice.
Tax treatment varies according to individual circumstances and is subject to change.
The Financial Conduct Authority does not regulate estate or tax planning or will advice.