Prudential Finds 15 Per Cent Increase in Inheritance Tax Paid

According to new data released by HMRC and analysis by Prudential, there was a 15 per cent increase in inheritance tax paid in the 2012 to 2013 tax year.

HM Revenue & Customs reviewed 280,000 estates in the tax year of 2012 to 2013 and, according to Prudential, there was no rise in the proportion of estates liable to pay inheritance tax. Almost 18,000 of those estates were liable for an average bill of more than £170,000; and a total of £3.05 billion was paid. This was 15 per cent more than the previous tax year's £2.65 billion.

Les Cameron, a tax specialist at Prudential, said:

"As the total amount of inheritance tax paid increases, so does the value of careful tax planning for anyone looking to cascade as much of their wealth to their families as possible.

"Planning for inheritance tax is at its most valuable when it is done early and has become increasingly important with the additional options and complexities brought about by the new rules allowing individuals to pass on pension savings to family members."

New measures are being introduced from April 2017, which will allow individuals to take advantage of a family home allowance in addition to the existing personal £325,000 inheritance tax allowance.

If you need help dealing with inheritance tax and estate assets, contact our inheritance solicitors on 0161 928 5558 for advice.

Collings

Inheritance Solicitors