The latest figures from HM Revenue and Customs (HMRC) show that the government collected £2.7bn in Inheritance Tax (IHT) between April and August 2021. This is 35% (£0.7bn) up on the same period last year. The increase in receipts has been attributed to a nil-rate band that has been frozen since 2009, rising estate values and the sad increase in deaths among those over 60 due to the pandemic.
Beat the big freeze
In his Spring Budget, Chancellor Rishi Sunak announced that both the IHT nil-rate band and residence nil-rate would remain frozen at existing levels until April 2026, at £325,000 and £175,000 respectively, meaning many families are already receiving increased IHT bills, especially due to rising property prices.
If you’re concerned about IHT, here are a few things to think about…
IHT top tips
Take sensible steps
Sensible IHT tax planning can help to reduce the amount of IHT your beneficiaries will have to pay and safeguard your wealth for the future. We can help – please get in touch.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.
The Financial Conduct Authority does not regulate tax planning.