Inheritance Tax exceeds £5 Billion for the First Time

Author: Heather Warnock
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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.

Heather Warnock

About Heather Warnock

Heather joined Mitchells Roberton in March 2013 as a Financial Guardian Administrator having graduated with a first class honours degree in law from Glasgow Caledonian University in 2011 and thereafter having completed her Diploma in Legal Practice at Strathclyde University in 2012. She was taken on as a trainee of the firm and started on 2nd June 2014. Heather has now completed her traineeship and is staying with us as a qualified assistant working in the Private Client Department. She will be assisting with succession and trust issues, the administration of estates and the preparation of Wills and Powers of Attorney. Heather is consistently client focused and is skilful in dealing with clients in circumstances which are frequently emotionally charged.Currently Heather is studying for the STEP Diploma in Trusts and Estates-Scotland and has passed her first exam Wills and Executries – Law and Practice with Distinction. Heather who is originally from Northern Ireland loves going home to visit her family whenever she can. She enjoys live comedy and the theatre. She is an excellent cook and expert baker….most welcome skills for our office. Email: hw@mitchells-roberton.co.uk

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