It has been a while since the personal allowance, or ‘nil-rate band’, for Inheritance Tax (IHT) rose. The IHT threshold currently stands at £325,000 for single persons and £650,000 for married couples or civil partners.
As property prices continue to rise, an increasing number of families are finding they may now be hit with a large IHT bill.
The Independent Office for Budget Responsibility has verified research by the Sunday Telegraph, which estimated that the number of people whose estates will be subject to IHT will rise to nearly 44,000 next year.
Although estimated increases in the number of people who will be required to pay IHT is largely down to increasing property prices in London and the South East, this does not mean to say that those outside of the South East should become complacent.
People who think they have a complex IHT issue often find that they don’t and those who take little interest in their affairs quite often do. Some people may find they are entitled to IHT relief, for example if you are the owner of a trading business or a farm, providing proper planning has been undertaken. For this reason, it pays to seek some expert advice in relation to your own personal circumstances.
Professionals such as solicitors and accountants are well-informed regarding the latest tax rules and legislation. It is better to seek advice early on to avoid unwanted complications at a later date. The cost of instructing a solicitor to help you plan ahead will be significantly lower than being hit with an unexpected tax bill – and of course, it gives you total peace of mind.
For expert, straight-forward advice on inheritance tax, please call us on 0113 201 4900 for a free, no obligation, initial discussion.Back to Blog