Recent figures published by HMRC show Inheritance Tax (IHT) receipts have reached their highest level since the current system was introduced in 1986. HMRC collected a total of £4.7 billion in 2015/16, an increase of 22% compared to the previous year.
Receipts have been increasing year-on-year and have almost doubled since the IHT allowance was frozen in 2009/10. It is thought that the ongoing rise in asset values, most notably soaring property prices, has led to the increase in tax take.
IHT along with Stamp Duty Land Tax are proving lucrative sources of tax revenue for the government.
Craig Walker, Senior Tax Manager at Hawsons, commented: “Inheritance tax receipts have rocketed in recent years due to the freezing of the IHT allowance and rising asset values.”
“As the total amount collected hits a record high, so does the value of careful IHT tax planning. Taking proactive advice is essential to mitigate exposure and to increase the amount that loved ones will receive.”
For more information on IHT planning please get in touch.
More from our tax experts
You can find all of our latest tax articles and tax resources here.
If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.
Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.