Here's an interesting statistic for you. I was hoping that I could explain why it has happened and what it means. I might be able to make a suggestion on the latter of these points, but possibly not the former.
HMRC released the details of the levels of Inheritance Tax (IHT) receipts received on estates across the UK in the tax year 2010/2011 (in it’s Inheritance Tax Statistics 2008-2009 document/page 4). This notes that Inheritance tax receipts have risen by 14% in this tax year. Admittedly, the amount collected is still below the past peak year of 2007/2008 by some margin (29%), but still interesting to see the amount rising at a time of austerity.
A full link to detail can be found here: http://www.hmrc.gov.uk/stats/inheritance_tax/commentary.pdf
At a time of economic woe, with savings being used to subsidise falling incomes, market volatility and the costs of Long Term Care increasing, some would have that quite the reverse would be the case. Indeed, with pressure on capital seeming to mount, you would have thought that the tax take on estate values would also be in decline.
I am not sure that the statistic can be explained away, however, making a will (a cornerstone of any good financial planning) is a good way of starting your inheritance tax planning.
Some would argue that you can gather whatever information you want from statistics.
Each individual will normally enjoy a nil rate inheritance tax band of (currently) £325,000 in this tax year, 2012/2013. On death an individual can pass this nil rate band to their spouse/ civil partner, allowing the total amount of the nil rate charge inheritance tax band to double to £650,000. Without any additional planning, the balance of any estate above this level will be subject to a tax charge of 40%.
There are ways of mitigating an Inheritance Tax liability, such as using the annual gift allowance or using surplus income as a means of making efficient gifts away from your estate, documenting these where appropriate. We would recommend that you take individual advice on this subject if it affects you and would certainly recommend that you seek independent legal advice when drawing up a will for your circumstances. Speak to our own legal adviser/ Solicitor or, if you have not sought advice before, we can refer you to a local professional to help you with your needs.
HMRC released the details of the levels of Inheritance Tax (IHT) receipts received on estates across the UK in the tax year 2010/2011 (in it’s Inheritance Tax Statistics 2008-2009 document/page 4). This notes that Inheritance tax receipts have risen by 14% in this tax year. Admittedly, the amount collected is still below the past peak year of 2007/2008 by some margin (29%), but still interesting to see the amount rising at a time of austerity.
A full link to detail can be found here: http://www.hmrc.gov.uk/stats/inheritance_tax/commentary.pdf
At a time of economic woe, with savings being used to subsidise falling incomes, market volatility and the costs of Long Term Care increasing, some would have that quite the reverse would be the case. Indeed, with pressure on capital seeming to mount, you would have thought that the tax take on estate values would also be in decline.
I am not sure that the statistic can be explained away, however, making a will (a cornerstone of any good financial planning) is a good way of starting your inheritance tax planning.
Some would argue that you can gather whatever information you want from statistics.
Each individual will normally enjoy a nil rate inheritance tax band of (currently) £325,000 in this tax year, 2012/2013. On death an individual can pass this nil rate band to their spouse/ civil partner, allowing the total amount of the nil rate charge inheritance tax band to double to £650,000. Without any additional planning, the balance of any estate above this level will be subject to a tax charge of 40%.
There are ways of mitigating an Inheritance Tax liability, such as using the annual gift allowance or using surplus income as a means of making efficient gifts away from your estate, documenting these where appropriate. We would recommend that you take individual advice on this subject if it affects you and would certainly recommend that you seek independent legal advice when drawing up a will for your circumstances. Speak to our own legal adviser/ Solicitor or, if you have not sought advice before, we can refer you to a local professional to help you with your needs.
The team at Chapters Financial can help you with your Inheritance Tax Planning and we look forward to looking at your circumstances and the outcomes that you would want to achieve. No individual advice has been provided in the content of this Blog.
Director, Chapters Financial Limited, Guildford, Surrey.
Chapters Financial Limited s authorised and regulated by the Financial Services Authority.
Chapters Financial Limited is not responsible for the content of external web pages.
Posts
No comments:
Post a Comment