{"id":21466,"date":"2021-10-14T15:12:59","date_gmt":"2021-10-14T15:12:59","guid":{"rendered":"https:\/\/smh.group\/?p=21466"},"modified":"2023-02-15T13:18:55","modified_gmt":"2023-02-15T13:18:55","slug":"iht-receipts-reach-6-billion-record","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/iht-receipts-reach-6-billion-record\/","title":{"rendered":"IHT receipts reach \u00a36 billion record"},"content":{"rendered":"

The amount of inheritance tax (IHT) collected by HMRC over the past year reached a record \u00a36 billion, some \u00a31 billion more than the previous 12 months. This increase comes as no surprise given booming property values and frozen nil rate tax bands. It seems the tax is no longer the preserve of the super-rich.<\/strong><\/p>\n

The IHT nil rate band has not been uprated for 12 years and is set to remain at \u00a3325,000 for another four. For a reasonably well-off couple, the loss of indexing means around an additional \u00a3200,000 of assets being subject to tax. The residence nil rate band (RNRB) is also fixed, at \u00a3175,000, until 2026.<\/p>\n

Property<\/strong><\/h2>\n

Although the nil rate bands total \u00a31 million for a couple, the average value of a terraced house in London, for example, is now over \u00a3700,000. Unfortunately, there may be little scope for any IHT planning if the value of your estate comes mainly from your property. However, it is important to have an up-to-date will, and to make the best use of reliefs and exemptions \u2013 especially the RNRB.<\/p>\n

You might wish to take out life assurance if you want your heirs to hold on to your home, rather than being forced to sell to fund IHT. The policy should be written in trust and increase in line with property values.<\/p>\n

Planning<\/strong><\/h2>\n

Any IHT planning will depend on your age, assets and how much you can afford to gift without impacting your lifestyle. Professional advice is always recommended, but there are some important considerations:<\/p>\n