Date Published: 30/09/2021 17:37
Future Life Wealth Management's independent financial planner Emma Baumback believes we must all now proactively consider the full repercussions of inheritance tax (IHT) at the earliest opportunity...
THE American statesman Benjamin Franklin is famed for writing: "In this world, nothing is certain except death and taxes."
And this quote had particular resonance for me recently…
The latest official figures from HM Revenue & Customs (HMRC) revealed that inheritance tax (IHT) receipts for April to August this year were up by £0.7 billion.
That represents an increase of 35% compared to the same period a year earlier.
In short, we are now feeling the effects of Rishi Sunak’s move to freeze the nil rate band of £325,000 and residence nil rate band of £175,000 until April 2026.
Add this to rising property and investment share values over the last year and the result is simple…
More estates have been brought into the scope of inheritance tax.
These figures prove that IHT is becoming increasingly profitable for the Treasury at a time when revenue is needed to help pay for the Covid bill and planned reforms.
With the new health and social care levy introduced, we have seen that the government is not afraid of tax increases, which raises speculation that further personal taxes such as IHT and capital gains tax, could be in for a reform when the Chancellor unveils the Budget next month.
With the clock ticking, I’d urge families to be reactive and consider their estate planning as soon as possible.
There are a number of options such as making regular gifts; investing tax-efficiently or considering the use of trust planning to help mitigate inheritance tax.
But as always, this is a highly complex area, but one we specialise in and would be happy to help you understand and determine what’s possible.
Please feel free to contact Future Life Wealth Management HERE at the earliest opportunity to discuss your options.
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