A record amount of Inheritance Tax (IHT) was collected in the last financial year, according to HMRC data. In the 2018/19 tax year, UK citizens’ estates paid a grand total of £5.4bn in death duties, an increase of 3% on the previous tax year.
This increase continues a long-term trend, as over the last nine years IHT receipts have doubled. The number of estates liable to IHT has been rising since the nil-rate band was frozen, in April 2009, at £325,000. Will IHT be earmarked for a shake-up in the March Budget? We’ll keep you posted on any developments.
In the meantime, many people are keen to put in place the right plans and tax-saving strategies to ensure they leave as much of their estate as possible to future generations.
There are ways to minimise the amount of IHT that would otherwise be payable, including giving away assets in your lifetime, taking out life insurance policies, setting up trusts, making gifts from your surplus income, maximising the use of your annual taxexempt allowances, or giving money to charity. We can help you assess your estate’s potential liability and make appropriate plans to mitigate IHT
It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.
Tax and Estate planning are not regulated by the Financial Conduct Authority
The value of pensions and investments can fall as well as rise. You may get back less than you invested.
Will writing is not regulated by the Financial Conduct Authority. Quilter Financial Planning Ltd are not responsible for any will writing advice.