What is in store for UK Inheritance Tax (IHT)?

HMRC collected a record sum of £5.4 billion in Inheritance Tax for 2018/2019. Before the Global Pandemic, there had been rumblings of IHT reform specifically from the All-Party Parliamentary Group. Suggestions included;

• Flat-Rate Gift Tax
• CGT Tax Free death uplift – abolished?
• Annual gifts exemption of £30,000 – after that lifetimes gifts taxed at 10%
• All lifetime gifts taxed at 10% immediately – no 7 years Potentially Exempt Transfers (PETS)
• No Agricultural of Business Reliefs!

With things getting back to some element of normality post Pandemic and with Government spending hitting hundreds of billions of pounds, where could the Government look to increase tax take?

Have a look at our 6 minute video which describes what potential IHT changes could be on the horizon and how they could affect clients with a Trust Planning idea thrown in for good measure.

Please click here to download our Holdover relief case study.

Ideally, we always recommend that clients have sit down meetings as a family to discuss the future and tax implications on their estate. As advisers, use the opportunity to ask these questions when conducting your annual or quarterly investment/financial reviews with them. There may be some surprises.

If you have any questions, please give Andy a call on 0161 282 0444 or email us today on enquiries@theralstangroup.co.uk.