The IHT Boom
You can’t open a newspaper without reading about the return of inflation.
An article caught my eye recently. It contained some figures which I think have important implications.
In the year to April, an extra £728 million was collected in inheritance tax (IHT) compared to the previous 12 months.1 Not an insignificant increase!
With inflation running at a 40-year high2 and IHT allowances frozen, receipts will only climb further. Families are forecast to pay £37 billion in IHT over the next five years.3
Some clients may be dragged into the IHT net as the value of their home and assets increase so it is important to prioritise estate planning.
1HMRC tax receipts and National Insurance contributions for the UK, HMRC, 26 April 2022
2Consumer Price Inflation, Office for National Statistics, May 22
3Economic and fiscal outlook, Office for Budget Responsibility, March 2022
*Octopus Investments June 2022