01142747576 bestadvice@knowleswarwick.com

Inheritance tax receipts to double by 2030

14th May 2019

Taxpayers in the UK are set to pay a total of £10 billion a year in inheritance tax by 2030, according to projections from Canada Life.

The most recent data from the Office for National Statistics shows that the Government collected £5.2bn in inheritance tax receipts in 2017/18.

This was an increase of around £1.38bn compared to the same time ten years earlier.

Canada Life's analysis, based on current revenue trends, predicts a much faster pace of change in the next decade.

It says this is a result of the nil-rate band having been frozen at £325,000 since 2009, which may mean more people are liable for inheritance tax as asset values increase.

The research also revealed that 18% of estates worth up to £1 million do not have an estate plan, meaning they may be paying more inheritance tax than necessary.

Neil Jones, market development manager at Canada Life, said:

"There's plenty that can be done within the existing rules to reduce an inheritance tax bill.

"Perhaps because of a very British reluctance to discuss death, many people won't bring up estate planning.

"As a consequence the Government is undoubtedly receiving tax that with proper planning wouldn't need to be paid."

Contact us to discuss estate planning.

Knowles Warwick Financial Services button

Click here for the Quickbooks website Xero Gold Partner Accountants Sage accountants, experts in cloud accounting, Sheffield, South Yorkshire ICAEW Chartered Accountant B1G1 Business for Good Click here for the ACCA website Connect Yorkshire Free Index  Sheffield Chamber of Commerce Click here for the Caunce O'Hara website Steve Knowles Yorkshire Advisor of the Year 2019 finalist

Knowles Warwick Financial Services Limited is authorised and regulated by the Financial Conduct Authority (in respect of regulated investment, insurance and mortgage business). For regulated financial services, the Financial Ombudsman Service is the alternative dispute resolution provider.