Inheritance Tax – HMRC reports an increased rise in receipts

Inheritance Tax – HMRC reports an increased rise in receipts

HMRC reports a rise of 8.6% in receipts of Inheritance Tax (IHT) to £3.4 billion in the 2013-14 tax year.  The rise is up from 7.9% in the previous year.

The threshold for IHT has been fixed at £325,000 since April 2009 and is not expected to rise until 2018, last year house prices rose on average by 10.5% fuelling the rise in IHT paid.

The Office of Budget Responsibility forecasts IHT receipts of £5.8 billion in the 2018-19 tax year.  IHT is paid on some 3% of all deaths at present but one could see this increasing substantially.

Proper long term tax planning can help to mitigate an individual’s liability to pay IHT on their death.  Amongst other things families should discuss the use of Trusts with elderly parents to help protect their inheritance for themselves, their children and for future generations.

Contact us to discuss the options.

Speak Your Mind

*

How can we help?

Call us today on 01908 866541
or send us an email