27th September 2017
Inheritance tax (IHT) receipts rose by 18.7% between April and August 2017, compared to the same period last year.
HMRC figures show around £2.4 billion in tax has been taken from people’s estates over the same period, coinciding with the introduction of the residence nil-rate band (RNRB).
The RNRB enables individuals to pass on 1 property, such as the family home, to family members and save on death duties.
If someone dies and their property is above the current £325,000 IHT exemption, the estate may be entitled to an additional threshold before any tax becomes due.
The following RNRB tax breaks are being phased in over the next 4 tax years:
|Tax year||RNRB threshold|
From 2021/22, the threshold will go up in line with inflation based on the Consumer Prices Index.
Sean McCann, chartered financial planner at NFU Mutual, said:
“Inheritance tax appears to be hitting families harder than ever before.
“Receipts have risen by almost 20 per cent and it’s clearly the result of an ever more complicated tax system and a more aggressive approach from the taxman.
“The system of reliefs for inheritance tax is fiendishly complex. Complicated tax rules mean families could be inheriting less than they are entitled to.”
Contact us to discuss your estate planning.