Connect with us

Hi, what are you looking for?

Investing

Inheritance Tax Receipts raise £600 million in a month

Inheritance tax receipts hit £600 million in April 2023 according to data released by HMRC this morning. This is £100 million higher than in April of the previous tax year.

Years of house price increases, soaring inflation, and tax freezes have pushed an increasing number of families that would not consider themselves to be wealthy above the threshold for inheritance tax.

There is a tax-free inheritance allowance called the nil-rate band that applies to everyone. Each person can pass on up to £325,000 of their estate without them having to pay any IHT. Anything above £325,000 could be subject to up to 40% inheritance tax. The nil-rate band has stayed at the same level since April 2009, even though inflation has cut the value of the relief by 32.8% over that time and the average house price has increased nearly 85%.

Some homeowners can also benefit from a ‘residence nil-rate band’ of up to £175,000 on top of the nil-rate band. This, however, only applies when you pass on your main residence to a direct descendant. The ‘residence nil-rate band’ has been frozen at £175,000 since April 2020.

Alex Davies, CEO and Founder of Wealth Club said: “The 2023/24 tax year is looking likely to be yet another record-breaking year for inheritance tax. It really is a cash cow for HMRC.

There are rumours inheritance tax cut could be cut in the run up to the next General election, with the government potentially increasing the threshold at which an estate becomes liable for inheritance tax. Alternatively, the government might consider a cut in the headline rate of tax. Either would be very welcome by the large numbers of affluent, but far from uber rich, households that are being hit by this most hated of taxes.

But in some circles, inheritance tax is already called the voluntary tax because so much can be avoided or mitigated through government backed investment schemes and careful tax planning. Writing a will is a good start. If you don’t your assets will be distributed according to intestacy rules and could be subject to IHT which could otherwise be avoided.

Read more:
Inheritance Tax Receipts raise £600 million in a month

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Inflation in the Philippines is driven by supply-side factors, and does not warrant a monetary policy response, National Economic and Development Authority (NEDA) Secretary...

Economy

Kinetix +’s doors were opened to an invite-only Media and VIP launch on Oct. 18, 2023. Kinetix + is the newest training facility in...

Economy

The culinary world joins the Hapag Movement Globe, in partnership with Facebook Online Community Fine Dining Club Philippines, proudly introduces the “Gourmet Giving Series:...

Investing

Britain’s financial regulators have confirmed that the cap on bankers’ bonuses will be scrapped from next week as part of a post-Brexit bid to...

Investing

The UK unemployment rate remains low, according to the latest official figures. The figure stood at 4.2% in the three months to August this...

Economy

By Keisha B. Ta-asan, Reporter THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver an off-cycle rate hike as early as Thursday this week, its...

You May Also Like

Top News

As the world seeks sustainable and energy-efficient solutions for heating and cooling, the heat pump market is experiencing a significant surge. According to the...

Investing

The Toto site’s user-friendly interface makes it easy for both beginners and experienced gamblers to navigate through the various features. “¸ÔÆ¢Æú¸®½º site is a...

Investing

Almost 100 jobs are thought to be under threat at smart home energy technology manufacturer myenergi. The Grimsby firm, named one of the UK’s...

Economy

JUNIOR FERREIRA-UNSPLASH The Philippines is a very small power market by ASEAN standards, with market demand peaking at 15 gigawatts (GW) compared to Thailand’s...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.