Recently published analysis by financial advice firm and insurer NFU Mutual has revealed that the average inheritance tax (IHT) bill reached almost £200,000.00 for the 2018/19 tax year, resulting in a 3.1% increase in HMRC’s annual receipts to a record £5.4billion.
These figures are the latest in a trend of steady increases that show little sign of slowing down. March 2019 was a particularly profitable month for the Treasury, with receipts up 44.4% on the previous month.
Whilst it is too early to speculate on the reason for the sustained increase, many of these payments are believed to be preventable. Unfortunately, public awareness on the various IHT reliefs, exemptions and allowances available is still very low, so the government continues to reap more and more revenue from this very complex system.
Measures as simple as taking full advantage of the residence nil rate band and the variety of lifetime exemptions available can have a significant impact on your final IHT bill. By seeking legal advice now, you can ensure that you have all the information you need to navigate this complicated tax regime, safe in the knowledge that more of your money will be making a difference to the future of your loved ones after you are gone.
For specialist legal advice on inheritance tax, or any other aspect of estate planning, please contact a member of our Private Client team on 0191 384 2441.