UK families paid £5.2 billion in death duties in the 2017-18 tax year.
According to HM Revenue & Custom’s latest monthly estimate, the taxman enjoyed an additional £400 million in inheritance tax (IHT) payments when compared to the previous year, despite the introduction of the new “family home allowance” which enables couples to pass on £850,000 tax free.
One national news outlet points out that just one in six families who paid IHT benefited from the new family home allowance, though far more were expected to qualify.
Meanwhile, new CBI analysis of data published by the Office for National Statistics has found that businesses paid £186 billion in taxes in 2017/18. The total business tax contribution amounts to 27 per cent of all tax revenue.
Corporation tax revenues accounted for 31 per cent (£57.2 billion) of total tax revenue from businesses, Employer’s NIC for 32 per cent (£60.3 billion), business rates for 15 per cent (£27.4 billion), fuel duties for 6 per cent (£12.1 billion) and other business taxes for 16 per cent (£28.9 billion).
Annie Gascoyne, CBI Head of Economic Policy, says the findings show that UK firms are “continuing to make a strong tax contribution, despite relatively subdued economic growth”.
With IHT receipts reaching a new record high, it’s essential that families seek advice on how to mitigate IHT in order to secure the financial future of their beneficiaries.
IHT can be mitigated by forward planning and our Beavis Morgan tax experts are available to guide you and advise you on the available strategies.
Our diverse team of tax professionals are also committed to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to lawfully exploit tax savings is made known to you, restructuring 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.