HMRC IHT Income

from The Will Company 

The link at the end of this of this post is a wonderful commentary on the income from IHT to HMRC. Very worthwhile reading.

The keys points from this year’s publication are:

• In the tax year 2018 to 2019, 3.7% of UK deaths resulted in an Inheritance Tax (IHT) charge, decreasing by 0.2 percentage points since the tax year 2017 to 2018. This continues the fall seen last year and is again likely due to the phased introduction of the Residence Nil-Rate Band (RNRB) tax-free threshold from April 2017.
• The total number of UK deaths that resulted in an IHT charge has also fallen. In the tax year 2018 to 2019, there were 22,100 such deaths, a decrease of 2,100 (9%) since the tax year 2017 to 2018. Again, this is likely due to the continued phased introduced RNRB.
• IHT receipts received by HMRC during the tax year 2020 to 2021 were £5.4 billion, an increase of 4% (£190 million) on the tax year to 2019 to 2020. This reverses the fall seen last year and means receipts have been broadly flat across the four years since the tax year 2017 to 2018. Receipts are below the peak seen in the tax year 2018 to 2019 by £33 million.
• The combined value of agricultural and business property relief (APR, BPR) was £3.49 billion in the tax year 2018 to 2019. This was a fall of £44 million (1.2%) compared to the tax year 2017 to 2018. While the value of BPR rose by £310 million, the value of APR fell by £354 million to more than offset itself. While the combined value is still below the peak of £3.8 billion seen in the tax year 2014 to 2015, the value of BPR claimed on unquoted shares is now equal to the tax year 2014 to 2015 peak, at £1.7 billion in the tax year 2018 to 2019.
• The value of exempted transfers to qualifying charities also fell, from £2.8 billion in the tax year 2017 to 2018 to £1.7 billion in the tax year 2018 to 2019.

Read the Commentary 

https://www.gov.uk/government/statistics/inheritance-tax-statistics-commentary/inheritance-tax-statistics-commentary

Could you do with some FREE, sound advice on:

• Writing a Will – What do I need and how much does it cost?
• Creating Lasting Powers of Attorney – If I was incapacitated who can act on my behalf?
• Property Protection Trusts – Can these really save Care Home Fees?
• Pre-Paid Funeral Plans – With so many to choose from how do I decide which plan is best?

There is so much confusion on these vital areas of estate planning, that sometimes just a chat with an expert in the field can clear up misunderstanding and set out the way ahead, without all the legal jargon.

Steve Worsfold
Affiliate Member of the Society of Will Writers
Advising on Wills/Trusts/Probate/Powers of Attorney

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