The UK’s inheritance tax (IHT) capitals have been revealed, following a Freedom of Information (FOI) request.
The findings, which come shortly after analysis by the Office for Budget Responsibility revealed that HM Revenue & Customs (HMRC) made £2.8 billion in IHT in the first half of this tax year, show that not only does Guildford in Surrey come first on the list, the region pays more in IHT than the whole of Wales and Northern Ireland combined – with 658 families paying an average of £231,000 in one year alone.
In second place is South-West London, including suburbs such as Chelsea and Wimbledon, where around 600 families pay between £346,000 and £390,000 each, totalling £227 million.
And in third place is Brighton, with 585 families paying out an average of £157,436, according to the 2015-16 FOI request to HMRC.
Unsurprisingly, all three regions are home to some of the most expensive properties in the UK.
There are many individuals and families with estates estimated to be above the threshold for paying IHT.
- Estates worth at least £325,000 are subject to IHT, although those who are married or in civil partnerships only have to pay if the estate they are inheriting is valued at £650,000 or more.
- Since 2017 there has been an additional Transferable Main Residence Allowance (TMRA) which gives extra tax relief for those passing property to their descendants.
But no matter who you decide to leave your estate to, the tax implications of transferring wealth cannot be ignored, and professional advice should therefore be sought to protect your wealth, secure the financial future of your beneficiaries and plan for IHT.
Our specialists at Beavis Morgan are able to assist. Contact your usual Beavis Morgan Partner.
Further reading:
Soaring house prices highlights importance of IHT planning