Experts are warning that large estates could be subject to a “hidden death tax” if they contain investments which continue to grow after death.
Whilst the amount of inheritance tax (IHT) due is calculated soon after a person dies, income accrued by the deceased’s estate during the administration period, which could last for a year or more, remains taxable, something which executors may not be aware of.
An article in the Daily Telegraph today explains that income accrued by the deceased’s estate during the administration period remains taxable, with executors being held personally liable for the unpaid tax if they fail to account for the dividends on any tax returns.
Soaring house prices, particularly in the South East of England, have dragged more estates into having to pay IHT. In total, inheritance tax payments rose 8 per cent year on year in 2017/18, to £5.2 billion according to HM Revenue & Customs data.
With IHT receipts reaching a new record high, it’s essential that families seek advice on how to mitigate IHT through forward planning, in order to secure the financial future of their beneficiaries.
At Beavis Morgan, our tax experts are available to guide you and advise you on the available strategies. We are also available to advise you in your role as executor of an estate.
Through our commitment to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to lawfully exploit tax savings is made known to you, we will restructure your affairs in a tax effective and efficient way.
If you would like to know more, please contact Barrie Dunning or your usual Beavis Morgan Partner.