IHT – to be or not to be

IHT – to be or not to be

Following Boris Johnson’s announcement about a £12bn a year tax hike to cover Health and Social Care, experts’ attention has moved onto wealth taxes and they have been giving their opinions on what ‘could’ and ‘should’ happen.

This has put Inheritance Tax firmly in the spotlight with conflicting views on what the Chancellor’s next steps should be.

While the opposition and unions are urging the government to tax wealth, a leading economist has said Inheritance Tax should be scrapped altogether.

Julian Jessop from the free-market Institute of Economic Affairs said he wasn’t a fan of the tax because he couldn’t see why somebody should have to pay more tax because they had died.

“People should be free to build up assets and pay tax on them as they are going along. The idea that you should pay a tax bill because you have died – I don’t really see any justification for that. My view is that it should be abolished.”

The opposite opinion came from Ed Smith who is head of asset allocation research at Rathbones, who said the level of IHT would have to be increased to make the numbers add up given that the retired population was growing faster than those in work. Because of this he said the chancellor wouldn’t be able to continue to rely on income tax.

“The classic argument against inheritance taxes is that they haven’t raised much money in the past, but the amount of wealth that is about to be transferred over the coming decades is unprecedented in the post-WW2 era.”

Tower Street Finance’s Dicky Davies said:

“We’re reading conflicting reports about what might happen with IHT daily, but what we do know is that while it exists in its current form, paying the bill is a problem that exists for many executors and personal representatives.

“We often refer to it as a chicken and egg situation – the probate process can’t complete until HMRC are paid, but people often can’t afford the bill until the probate process has completed and estate proceeds are distributed.

“Our IHT Loan has helped our partners offer this extra service to their clients, helping them to ‘unlock’ problem estates which are asset rich and cash poor. It also speeds up the whole process saving time and cost.”

To find out more about partnering with us visit towerstreetfinance.co.uk, call 0343 504 7100 or email [email protected]


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

Tower Street Finance











Tower Street Finance (TSF) was set up by an experienced management team who saw a need for relevant, accessible financial products which benefit administrators of estates, executors and beneficiaries.

We are passionate about using insight, data and our considerable experience to help customers with innovative products and services, including those who may be in financial difficulty.

We currently have four products which are aimed at the inheritance market and they all have a common DNA. There are:

  • No credit checks
  • No risk or personal liability
  • No charge over property
  • No monthly repayments
  • No requirement for a Will

IHT Loan

The IHT Loan can help when estates are effectively ‘locked’ because the executor needs to pay the IHT to get the Grant, but needs the Grant to realise the assets to pay the IHT.

It’s taken out by the executor/personal representative and can solve the problem. The money is used to pay HMRC and it’s a way of meeting the IHT liability to unlock the estate with no risk or need to take out a personal loan/bridging loan.

Inheritance Advance (winner of Innovation of the Year, British Wills and Probate Awards 2020)

An Inheritance Advance allows beneficiaries to access a proportion of their inheritance sooner, with the Advance repaid out of the proceeds of their inheritance. This solves the problem of beneficiaries asking when they’ll be able to get their money and you having to explain that the process is complicated and lengthy.

Again, there’s no risk – if another Will emerges or assets take longer to sell or sell for less than anticipated, or another debt is discovered, we take the risk.

Inheritance Dispute Funding (IDF)

Inheritance Dispute Funding helps people who want to dispute a will but don’t have the money to fund the legal bills. We know that one in four people would dispute an inheritance if they felt it was unfairly distributed.

Contesting a will can cost up to £5k in upfront costs and there’s no guarantee your case will be taken on – with IDF the solicitor gives their opinion on the case and win or lose – we take the risk.

We pay the costs and then they’re repaid from the estate proceeds.

Estate Expense Funding (EEF)

Estate Expense Funding is for executors who face costs while they’re dealing with their responsibilities of administering an estate. These can be unexpected but we can help cover the costs until the inheritance is released

Executors could be liable for expenses such as funeral costs, professional fees, house and garden maintenance and more.

We pay the costs and then they’re repaid from the estate proceeds

Key Services

Key Contact

Richard (Dicky) Davies, Business Development Director
Tel: 07702 559051
Email: [email protected]
LinkedIn Acc: Dicky Davies
Facebook: Tower Street Finance
Instagram: Tower Street Finance


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North Yorkshire