IHT planning becoming increasingly important

Inheritance Tax (IHT) planning is growing increasingly important in the UK, as rising wealth and property prices appear to be pushing more and more British families above the IHT nil rate band of £325,000.

Data recently published by HM Revenue & Customs (HMRC) has revealed that IHT receipts hit a record high in 2017/18, soaring to a previously unseen £5.2 billion.

Commentators have said that rising estate values are to blame for this shock increase, coupled with the fact that the nil rate band above which IHT is incurred has remained frozen at just £325,000 since 2009.

There are a number of ways that families and individuals can mitigate their IHT liability, such as by donating a portion of their estate to a charity or by using the additional residence nil rate band (RNRB) to pass property down to their children, grandchildren, step children or foster children.

However, separate research suggests that many Britons are confused by the rules governing IHT and are unsure as to what steps they might need to take in order to reduce their overall bill.

At Moore Thompson we are able to explain, in no-nonsense terms, how IHT might impact on your estate and help you sort out your tax affairs.

We will work on your behalf to ensure that your tax liability is minimised so that more of your hard-earned money stays with you, your business and, eventually, your loved ones. To find out more, please contact us.