Inheritance Tax bills increased by 6%

If you have worked hard your whole life to build up your estate, would you want it all to be taken by the tax man? Without the correct planning in place there is always the risk that your loved ones will have to pay large amounts of Inheritance Tax (IHT).

NFU Mutual has recently revealed its findings from their research into IHT. The analysis found that in 2018/19, the IHT bill from 22,100 deaths with IHT bills came to an average total of £209,502, an increase of 6% from the previous year.

With 64% of tax revenue coming from estates in the South East, London, East of England, and South West, the figures also highlight a significant North-South divide in IHT. A further 10% came from the East and West Midlands, while the northern regions, Wales, Scotland and Northern Ireland accounted for just 25% of the total IHT revenue.

NFU Mutual have also warned that the number of estates impacted by IHT is expected to increase as the Chancellor Rishi Sunak has frozen the level at which people start paying IHT for a further five years to help pay the Covid-19 bill. This means the nil-rate band will remain at £325,000 and the residence nil-rate band at £175,000 until 2026.

Our Bloodline Planning strategies can help to protect your loved ones from large IHT bills. We can help to ensure that your children and grandchildren are able to benefit completely from the Inheritance you want them to receive. So if you are concerned about rising IHT levels, our experts can help you set up the right kind of planning for your situation.

For more information, please contact us on: Tel: +44 7831 379562 (UK) or +34 622 374 738 (Spain), or email help@sallyherdman.com