HM Revenue & Customs recently released data which showed Inheritance Tax (IHT) raised a record £5.2 billion in the financial year 2017-18, up 8% from the previous tax year.
It is thought that the increase is due to the fact that property prices have continued to rise despite the fact the nil-rate band (NRB)- the value of an estate on which people will pay IHT – has not changed from £325,000 since 2009.
The report also revealed the following:
- In 2015-16, 4.2% of UK deaths were liable to IHT, increasing slightly by 0.3% since 2014-15. This highlights the long-term increase since 2008-09 and is partly due to freezing the NRB at £325,000 in April 2009
- IHT receipts totalled £5.2bn in 2017-18; this is an increase of 8% (£388m) from the previous year and an overall steady rise since 2010-11. There was a 22% increase in receipts from 2014-15 to 2015-16, which reflects an estimated 43,900 excess winter deaths in 2014-15
- Since 2009-10 the net capital value of estates has increased by £17bn to £79bn in 2015-16, around 54% of this increase is in residential property
- The total number of liable estates has increased year on year since 2009-10. In 2015-16 there were 24,500 liable estates, an increase of 1,300 from 2014-15.
Please contact Heather Warnock on 0141 552 3422 or by email Heather@mitchells-roberton.co.uk to discuss your specific needs and circumstances. She looks forward to hearing from you and helping you with your legal concerns.