For some time the amount of revenue generated by Inheritance Tax has been significant. Recent figures show that, for the first time ever, HMRC received more than £4billion in Inheritance Tax between April 2015 and February 2016.
There is a significant increase in the amount of revenue this year, in comparison with the £3.8billion received last year. However a key contributing factor to the increase could be that the number of reported deaths between December 2014 and March 2015 was a considerably higher figure than previous years.
Inheritance Tax is currently under scrutiny following George Osborne’s reforms to introduce a new allowance of £1million for married couples, inclusive of a home. Widespread criticism has surfaced from key political figures, with the Institute of Fiscal Studies predicting that the number of estates liable for Inheritance Tax will decrease by 40%.
The full Inheritance Tax reforms will come into effect next April 2017.
For advice on Inheritance Tax planning, please contact us.