IHT liabilities pass £7 billion in 2023 to 2024.

The latest figures from HMRC show that inheritance tax liabilities reached £7.03 billion in the 2023 to 2024 tax year, the first time the total has passed £7 billion.

What stands out is not simply the scale of that number, but how it was reached. The number of estates paying inheritance tax actually fell over the year, yet the total collected continued to rise. The nil rate band has remained frozen at £325,000 since 2009, and as asset values have continued to increase, the average bill for families paying inheritance tax has risen without having changed their circumstances at all.

There are many reliefs and exemptions which may be of use in managing an individual's exposure to inheritance tax. We have considerable knowledge of these exemptions and reliefs to assist with lifetime planning, for example tax efficient gifts, the use of trusts or other entities (such as family investment companies) and the structuring of your Will.

This underlines the value of keeping estate planning under continual review, rather than treating it as something to revisit only once or when a significant change in circumstances occurs.

 

Meet the author: Edward Jones, Associate Partner.

 

This information does not represent legal or tax advice. Seek appropriate legal or tax advice about the topics covered, specific to individual circumstances, before taking or refraining from any action.