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Legal News | 25.04.24

Your money might be growing, but so could your tax bill…

Last week we talked about fiscal drag and its potential impact from an inheritance tax (IHT) perspective.

Proving that point, HMRC has released data showing that from March 2023 to April 2024, IHT receipts totalled a record-breaking £7.5 billion.  This was a £400 million increase from the previous year.

The Institute for Fiscal Studies estimates that only 4% of estates are currently liable to pay Inheritance Tax, but that this will increase to over 7% of estates by 2032-33. With property values, inflation and interest rates on the rise and given that the IHT nil rate band allowance and various gift exemptions remain unchanged year after year, an increasing number of estates are being dragged over the Inheritance Tax threshold.

If you are concerned about Inheritance Tax and how close to the threshold your estate could be, now is the time to review your finances.

 

Posted By Our Wills, Tax, Trusts & Probate Team