• March 28, 2024
 Inheritance tax hits highest level ever

Inheritance tax hits highest level ever

As reported in the financial press, inheritance tax bills have topped nearly £5 billion a year for the first time. UK consumers are failing to make provision for inheritance tax, and it’s costing them heavily.

Inheritance tax drew £4.7bn from UK consumers in the 2016/17 tax year, and is estimated to increase by a third more over the next five years.

So why is inheritance tax rising?

HM Revenue & Customs has attributed rising IHT receipts primarily to rising asset values, with residential property making up around a third of the total value of tax paying estates.

As the average value of estates rises, an increasing number of estates are now valued over the IHT nil rate band, which has been frozen at £325,000 since April 2009.

Inheritance tax rules are notoriously complicated and although it can cost people with significant assets a sizeable sum to employ an expert to sift through their finances, it is worth it.

Tom Selby of AJ Bell commented in the FT Advisor that:

“You can’t really underestimate how difficult inheritance tax rules are. HMRC is reaping in a massive sum in tax from inheritances that could be avoided if the right measures were put in place. Yes, it may cost hundreds or thousands of pounds to get it right, but the amount you pay now will be less than that given to the tax office. You could have paid an adviser say £2,000, but if you didn’t you could end up passing HMRC more than 100 times than sum.”

For consumers, this is a major area of education. There is a lot of misunderstanding among even informed consumers about what an individual’s IHT allowance, is how allowances can be transferred and the reliefs and alternative means of obtaining such reliefs with a view to minimising IHT liability. There are a huge range of options available to clients through effective death or lifetime planning.

Managing this complex market needs much more education and new solutions to help advisers assist their clients.

Our team of experts are hosting a series of three FREE webinars so that you can provide your clients with the best advice.

Limited spaces available, register now!

All of our Webinars are held at 10am until 11am.

The first in the series looks in detail at protecting IHT Allowances, identifying what allowances exist, Gifting, PETs and CLTs and IHT exemption.

Click below to register for the Sessions in September!

Friday 8th September

Monday 11th September

The next session in the series considers how Discretionary Trusts can save your clients IHT, Periodic V generational IHT, Life Assurance post death planning, Death in Service and other lump sum benefits and much more.

Click below to register for the Sessions in October!

Friday 6th October

Monday 9th October

The last in the series will identify how to Maximise IHT Reliefs, BPR and APR planning, NRB and RNRB planning and gifting with reservation.

Click below to register for the Sessions in November!

Friday 3rd November

Monday 6th November

Don’t let a lack of education and awareness mean you fail to use the variety of tools that can help reduce the burden of IHT for your clients, family and friends.

Join our LinkedIn Discussion group:

Join our LinkedIn Webinar Group. Our Estate Planning experts will address all of the questions raised during the webinar and any further queries relating to the topics covered. Become part of our growing community by sharing your opinions, questions and knowledge with us.

Click here to join

This article was submitted to be published by Countrywide Tax & Trust Corporation as part of their advertising agreement with Today’s Wills & Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills & Probate.

CTT Group

http://www.countrywidegroup.co.uk/

  CTT Group is an established Legal Services firm providing multi-disciplinary support for the UK’s Professional Adviser community. Their expertise spans multiple areas of Law, Estate Planning, Finance and Tax matters. CTT Group is recognised as a leading figure in the industry due to their wealth of experience and technical knowledge in the legal and financial sectors. CTT Group is made up of six areas: CTT Professional Services: A specialised knowledge hub designed for the Professional Adviser community and CTT Group members. The Professional Services team will provide you with a bespoke training and support package to suit any business. This includes the New entrants team, Training, Estate Planning Team, Professional Indemnity Insurance Service & the Resource Hub. CTT Tax and Trust: a premium support system for the Professional Adviser community, providing professional executor and Trustee services. They specialise in Estate Planning, Tax and Trust matters and have a wealth of knowledge and experience in delivering the right solutions for your clients. CTT Legacy Software: Ground-breaking legal software that will change how you work. Legacy was explicitly designed with you and your business in mind, so it will seamlessly align with your needs. It can also be tailored to suit your business needs, giving you complete control over your client journey. CTT Legal: Providing innovative and modern solutions to even the most complex legal problems. CTT Legal offer comprehensive Legal advice alongside CTT Law; an SRA-regulated law firm and strategic partner of CTT Group. This includes Residential and Commercial Conveyancing, Litigation, Document production, Client care, Professional Executor & Professional Executor. CTT Accountancy: A newly established Accountancy firm that will work in partnership with you and your business. CTT Accountancy is a practice of highly skilled and experienced accountants with expertise in trust matters, uniquely positioned to offer your clients a range of accounting services, whatever their needs. CTT Private Client: Offering individual professional advice to high-net-worth individuals with various financial situations. Their specialist team have a wealth of knowledge and will work with you to understand your requirements and provide bespoke advice. Click here for more information: https://ctt-group.co.uk/ Contact: CTT Group Tel: 01926 514 390 Email: enquiries@ctt-group.co.uk Address: CTT Group, Gables House 62 Kenilworth road Leamington Spa CV32 6JX