A record £5.1 billion has been collected by HM Revenue & Customs through inheritance tax (IHT) receipts this year.
According to the findings, the jump of 9 per cent on 2016 was driven by the sustained period of rapid house price growth between 2014 and 2016, coupled with the IHT threshold currently frozen at £325,000, leaving more estates now subject to the tax.
Some families could be left with large inheritance tax bills, Tim Fullerlove, partner at law firm Wilsons warns, adding: “A substantial amount of wealth is now being taken by the government through IHT. What upsets people is that this is wealth that is being taxed twice.
“It is important that people start planning as early as possible how they mean to pass their wealth on to their children or grandchildren. If they do not do this, families could be met with large IHT bills.”
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.