Inheritance Tax receipts on the increase, time for assistance for the tax payer…

There has been much discussion in the press and amongst political groups recently but, ultimately, the Budget did not reduce Inheritance Tax rates. The Inheritance Tax threshold is currently at £325,000 for an individual or, potentially, £650,00 for a married couple/civil partners. The value of a net estate above this threshold is taxed at 40 %. There are also tax concessions relevant to a main residence, that passes to direct descendants, that can, potentially, provide a further £350,000 for a married couple/civil partners before the 40 % rate applies.

The Treasury is on course to take record receipts of about £7.5 billion from Inheritance Tax in the 2023/24 tax year after reaching a record of £7.1 billion in 2022/23. There may be tax reductions by the Treasury at some point but it is still advisable to seek advice about minimising Inheritance Tax on your estate. It is an important tax for the Treasury and may have important implications for you and your estate.

Gifts can be made, prior to death,  either outright or into a Trust with the aim of reducing your estate for tax purposes. If there is a business in your estate, Wills can be prepared to leave the business into a Trust and the non-business assets to a surviving spouse or civil partner to remove Inheritance Tax, at least when the first spouse passes away.

We would be pleased to speak with you about Inheritance Tax and Will planning. Please contact Rob Gore on 01606 74301.