Government’s coffers set to increase as a result of Inheritance Tax
Latest figures suggest that an additional £900million in Inheritance Tax (IHT) will be collected by the Government between now and 2022.
Documents which were released as part of the recent Autumn Budget revealed that the Treasury expects to receive a larger than expected amount from IHT over the next five years.
Back in March, the Office for Budget Responsibility (OBR) estimated that around £32.4billion would be received by the Treasury coffers during this time period.
But the forecast has now been adjusted upwards, with analysts expecting that IHT payments will now increase by almost £1billion.
The OBR has said that the adjustment takes account of the fact the increasing number of people who die each year, coupled with the fact that property prices are rising, which has led to an increase in the number of individuals falling within the IHT bracket.
It is believed that more rigorous enforcement by HM Revenue & Customs’ (HMRC) team of tax investigators has also had an impact on the figures.
Previous statistics revealed that IHT receipts rose to £4.8 billion in the 2016/17 financial year and it is widely expected that this figure will edge over the £5 billion mark within the next 12 months.
The rules surrounding Inheritance Tax are complex and confusing, so it is important to seek specialist IHT planning advice to suit your specific circumstances, sooner rather than later, and thus ensure you do not hand over to the taxman more than is necessary.
To find out how the experts at Moore Thompson can help you, please contact us.