With the country in the middle of a cost of living crisis, it’s perhaps surprising to learn that inheritance tax receipts increased by £700 million to reach £5.3 billion between April and December last year, with experts heralding it as a “record-breaking year” (see article on FT Advisor here).
Nationally, the regions that saw the most estates pay inheritance tax were London, followed by the south-east, and then the East of England. In our own East of England area, the average estate value was just over £1,180,000, and of this, the average property value was just over £524,000.
Such a bumper tax haul is being seen as indicative of ever-increasing property prices bringing more estates over tax thresholds that are being left static (for example, the inheritance tax nil rate band is to remain at £325,000 until 2027/28, as confirmed in the Chancellor‘s Autumn Statement in November).
In addition, this data undoubtedly shows how important it is for clients to understand the tax threshold(s) available to them, taking into consideration their particular set of circumstances, as family arrangements, types of assets held and lifetime gifts made can affect the inheritance tax position of a client’s estate. A regular review of life planning is undoubtedly a prudent move, and can be combined with making or reviewing one’s Will.
If you require any assistance in this area, our expert Wills, Trusts and Probate team would be happy to help and would encourage you to get in touch.