Inheritance Tax Payments Reach Record High

The amount of money the UK government received from inheritance tax has reached a new high of £4.7 billion for the year ending 31 October. This figure is up 11.9 per cent from £4.2 billion the previous year.

Data suggests that the rise is due to a freeze on the tax threshold combined with the inflation in property prices.

Under current legislation, anybody leaving an estate behind is taxed 40 per cent on anything over £325,000. Rising house prices mean that individuals of modest homes may now be required to pay the tax.

However, changes are in the pipeline which will come in to effect in April 2017. From this date, there will be a new 'family home allowance' which will enable married couples and civil partners to pass on up to £1 million tax-free so long as they are a homeowner.

Another new addition will be the introduction of the 'inheritance tax credit' which is designed to encourage individuals to downsize into smaller properties for their old age.

If you are looking for specialist inheritance tax planning advice, speak to our experts today in complete confidence. Call us on 0161 928 5558.

Collings Solicitors

Inheritance Tax Planning