HMRC have just released details of how much inheritance tax (IHT) they have taken from the estates of deceased UK individuals and the total last year soared by 22%, to an all-time record level of £4.6 billion.
Since 2009-10, the amount taken in IHT has increased on average by 12% each year and is now at the highest level since IHT was introduced in 1986.
A lot of this increase is due not only to house prices (8.4% last year, according to the Halifax House Price Index), but also to the fact that the standard amount someone can leave without IHT being payable (the Nil Rate Band) has been unchanged since 2009 – and will continue to be frozen until 2021.
Facts about IHT
The information within this newsletter is based on our current understanding of HM Revenue & Customs guidance. Tax relief is dependent on your own particular circumstances and subject to change. It is recommended that you seek professional advice before making any financial decisions.