Are Inheritance Tax bills increasing? HMRC have recently published their latest round of statistics on Inheritance Tax (IHT), covering 2021 to 2022. These confirmed a significant increase of 3% in the number of estates subject to the charge, and a corresponding increase in the amount of IHT flowing into the Treasury.
Overall, 4.39% of UK deaths resulted in a charge to IHT in 2021-22, up 0.66% on the previous year. IHT swelled the UK's coffers by just under £6bn in 2021-22, 4% more than in the previous year.
The new Government has been explicit: they need to bring in the cash. With a 5% rise in relief given out in respect of agricultural and business property, at £4.4bn these statistics no doubt increase the likelihood that they will attract Rachel Reeves' scrutiny. The benefits gained by passing assets to spouses and civil partners could also be targeted; £15.5bn of assets were protected from an IHT charge in this way in 2021-22.
Now, more than ever, is the time to be planning effectively, to protect more of your estate for your family and future generations.
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