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Record high £5 billion in Inheritance Tax collected by HMRC
It has been reported that an estimated £5 billion in Inheritance Tax was collected by HMRC in the last tax year, a record high.
The increase has been attributed to a rise in property prices, which has pushed many estates over the Inheritance Tax free threshold, currently £325,000. The rising costs in moving, increase in stamp duty and a lack of suitable housing for the elderly are partly to blame as people are now less likely to downsize meaning that their wealth is tied up in the family home. This coupled with the fact that the inheritance tax free allowance has not been increased in line with house prices means that more estates are becoming subject to inheritance tax.
What does this mean for you?
It is increasingly more important to make sure you take steps now to plan for your future. Careful succession planning and a well drafted Will could help to reduce your Inheritance Tax bill on your death by maximising the use of the reliefs and exemptions that may be applied to your estate, including the new Residence Nil Rate Band which was introduced in April of this year.
If you are concerned about your tax position then you should seek legal advice. Tozers have a specialist team of solicitors who offer a Will writing service and tax planning advice. Please contact the Wealth Management team for more information.