Our May Active Practice Update provides guidance on planning strategies for managing inheritance tax liability. With a little savvy planning , many people may be able to take themselves out of the scope of inheritance tax or, at the very least, reduce its impact significantly.
We are all somewhat used to living with economic doom and gloom at present, from sky-high inflation rates to tax rises being splashed across the news headlines. But recent analysis from the Office of Budget Responsibility shows that you may also get stung harder after you are gone. They estimate that HMRC inheritance tax takings are set to rise to £37 billion cumulatively over the next five years. That’s
compared to £26.7bn for the previous five years to and including the 2021/22 tax year. The rise will be driven by inflation, and the freezing of the thresholds at which inheritance tax becomes payable.
This means that more people, and more of their wealth, get drawn into the scope of inheritance tax.
Read our Estate Planning Guidance
If you would like to discuss in more detail any of the issues raised in this article with a member of our team, please call 01772 741200