Nearly £6bn of Inheritance Tax (IHT) was collected in the 2021/22 tax year according to the latest Government figures – a new record for British families.
While these figures are from a couple of years ago – it can take time for the official numbers to be fully collated. These latest figures shows a trend towards more estates being liable for the tax, and the numbers are set to keep rising.
With the Office for Budget Responsibility predicting the IHT take will grow to £9.7bn by 2028/29, it’s important to understand why an increasing number of people are falling into the IHT net, and whether there’s anything you can do to reduce the chance of your own estate being liable.
IHT is also a possible target for the Labour Government to raise funds, so action before the next budget in October is recommended.
Please contact us if you wish to discuss further. We can supply a document for you to complete listing all assets and liabilities. Whilst we will have a lot of the information, we may not know how much there are in tax free ISAs for example as any interest or dividends do not need to be shown on the tax returns.
IHT is payable at the rate of 40%!
