Inheritance tax receipts hitting high shows more help needed for public
Recent figures have shown that inheritance (IHT) tax receipts have grown greatly over the past year, reaching £5.3 billion in the year to end of February.
Whilst the treasury will be no doubt be pleased, as Inheritance tax experts in London, it is somewhat disconcerting to see such a rise in this taxation.
The figures, according to HM Revenue & Customs, show a 13% increase observed in IHT over the past year, which is a record rise, with the release of the statistics coming soon after the suggestion of a review of the tax being put forward.
The increase has in part been attributed to the rise in property prices – the introduction of the residence nil rate band last year is anticipated to reduce the amount paid.
The new residential nil rate band rising by £25,000 each year, will eventually provide couples with an additional £350,000 allowance if they are passing on their main residence to direct descendants.
It is worth noting that given its gradual introduction, it will not be fully phased in until 2020/21.
Here at Pindoria Solicitors, it seems clear that substantial portions of individuals’ wealth are now being given to the Government through IHT.
We think it is fair to say, with London the place in the country most greatly affected by this rise, no one wants their children or other dependents to have to pick up large inheritance tax bills, so it is vital to think ahead as early as possible about how to pass wealth on to children and grandchildren in a tax efficient manner.
This can be relatively straightforward, but as we said, it does require foresight.
It does concern us, being inheritance tax experts, that too many people in London who are likely to fall foul of this taxation are often unprepared.
If you believe that you may need some expert help in looking at your potential inheritance tax issues, we at Pindoria Solicitors are happy to help. Please contact us today.