Inheritance Tax revenues top £5bn and are set to rise
Last year HMRC accrued £5.2bn of taxpayer’s money from Inheritance Tax alone - £400m more than the year before – and this figure is expected to rise to £6.5bn this year.
That is according to business advisory firm Smith Cooper which has warned consumers to take advice to minimise IHT exposure.
Smith Cooper says IHT is a concern for a growing number of people and in recent years soaring property prices and rises on the stock market have inflated many people’s wealth.
The increases in the nil rate band for IHT have not kept pace with these increases.
The Midlands-based firm, which has six offices in locations including Derby, Birmingham and Nottingham, says HMRC had also adopted “a much more aggressive approach to tax avoidance schemes and have stepped up routine enquiries into estates and IHT returns to increase revenues, meaning Inheritance Tax is affecting more people than ever.”
Smith Cooper partner, Catherine Desmond, specialises in IHT planning and has been assisting clients for more than 20 years.
She said: “IHT can be notoriously complex to navigate, meaning some families are disadvantaged if they do not seek reliable and timely advice.
“It is vital that individuals take the necessary precautions to manage their IHT exposure and that they are fully advised and take advantage of all the allowances and reliefs available.
“Forward planning can make the difference between paying a large amount of IHT and potentially paying little or none in some cases.”