British families paid £2.4 billion in inheritance tax (IHT) in the first five months of the current tax year – nearly a fifth more than in the same period in 2016.
The increase coincides with the introduction in April of the government’s inheritance tax policy, the Residents Nil Rate Band, which enables individuals to pass on one property, such as the family home, to family members and save on death duties.
Commenting in Sunday Times, Sean McCann, Chartered Financial Planner at NFU Mutual, says: “Inheritance tax appears to be hitting families harder than ever before.
“Receipts have risen by almost 20 per cent and it’s clearly the result of an ever more complicated tax system and a more aggressive approach from the taxman.”
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. Our Beavis Morgan tax experts are available to guide you and advise on the available strategies.
If you would like to know more, please contact Barrie Dunning or your usual Beavis Morgan Partner.