The Revenue collected a record £5.3 billion in inheritance tax (IHT) last year, according to data from HMRC.
The report, compiled by private client law firm Wilsons, shows the Revenue authority’s IHT take has jumped by 13 per cent in the past year, up from £4.7 billion in 2016-17.
The rise is down to property prices going up and an increase in the value of assets such as stocks and shares, combined with the IHT threshold remaining frozen at £325,000 since 2009.
Torsten White, partner at Wilsons, says: “Substantial portions of individuals’ wealth is now being taken by HMRC through IHT. The value of that IHT, somewhat worryingly, continues to rise at an alarming rate.
“No one wants their children or other dependents to have to pick up hefty inheritance tax bills, so it is important to plan ahead as early as possible how to pass wealth on to children and grandchildren.
“With the residence nil rate band increasing just £25,000 next year, and the slowdown we are seeing in inflation, it will be interesting to see whether tax take from IHT starts to level off in coming years.”
Due to complicated tax rules, many families could possibly be inheriting less than they are entitled to. However, through careful planning IHT can be mitigated.
Whether you are looking to save on capital gains tax, inheritance tax, income tax or all three, there are various options available to you. We work across a broad range of sectors, advising entrepreneurial people with an appetite for financial growth.
If you would like to know more, please contact Barrie Dunning or your usual Beavis Morgan Partner.