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IHT payments to HMRC on the rise - are you getting the right advice?

Inheritance tax (IHT) receipts hit a record high of £5.2 billion in 2017/18, according to statistics published by HMRC. This was a year-on-year rise of 8%, and continues a long-term pattern as IHT receipts have been increasing by an average of 10% a year since 2009/2010. The report says this is partly due to rising house values, as well as the nil-rate band - the threshold at which people are liable to pay IHT on their estate - being frozen at £325,000 in 2009.


However, the figures do not yet reflect the full impact of the residence nil-rate band, which was introduced in April 2017 to provide an additional IHT allowance to eligible individuals passing on a family home to direct descendants. As of April 2018, this additional allowance increased from £100,000 to £125,000.


Most chartered financial planners state that they have seen a more aggressive approach from the taxman in recent years, and that has driven a surge in IHT receipts.


Afford Bond Partner, Paul Edwards said: "Making this tax easier to understand and work out can't come soon enough for the lay person.  Many families are failing to take proper advice and carry out strategic planning but it really should be a priority for anyone with a potential inheritance tax problem."  


To speak to a tax expert at Afford Bond Chartered Accountants regarding IHT and tax planning, please contact Kate.Quirk@affordbond.com for further details.