Inheritance Tax (IHT) is widely viewed as unfair, and even the chancellor agrees it’s complex, but only effective and early planning can minimise its impact on your estate.
A record £5.2 billion in IHT was collected in the 2017/18 tax year, and the Office for Budget Responsibility forecasts that receipts will increase to £6.4 billion by 2022/23.¹ Yet IHT is often referred to as a ‘voluntary tax’; the fact is that ignorance and inertia are largely to blame for wealth ending up in the hands of the taxman rather than the family.
Estimate how much Inheritance Tax may be due on your estate by using our IHT calculator.
The good news is there are plenty of things you can do to keep any potential IHT bill to a minimum, although with the end of the tax year looming, you only have a short window of opportunity to use allowances that might otherwise be lost.
Please get in touch if you would like to review your individual circumstances and receive advice on how to best take advantage of tax-saving and investment opportunities before the end of the tax year.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.
¹ ‘HMRC Tax & NIC Receipts’, November 2018