Up-to-date figures from HM Revenue & Customs (HMRC) suggest that the Treasury collected a record-breaking £5.2 billion last year.
Most commentators suspect that ever-rising house prices and a successful stock market are partly to blame for the Revenue’s record IHT take. But research highlighted in The Express suggests that at least part of the problem lies with British families themselves – who are failing to seek appropriate tax planning advice.
In April 2017, a new IHT allowance was introduced which enables individuals who wish to pass on a family home to their direct beneficiaries in their Will to tap into an additional tax-free allowance.
As of April this year, this allowance is worth £150,000 to each individual, but according to the research cited in The Express, only one in six taxpayers have taken advantage of the new allowance – known as the main residence nil rate band (RNRB) – since it was first introduced last year.
In England and Wales, IHT is levied at a rate of 40 per cent on all estates valued at £325,000 or more. However, by using the RNRB and other tax planning initiatives, it is often possible to pass on a large estate much more tax-efficiently.
Rotherham Taylor can assist with IHT planning advice, but we are also one of a small number of accountancy practices in the UK to be licensed to provide probate services by the Institute of Chartered Accountants in England and Wales (ICAEW).
This means that our team can offer a wide range of probate services to clients, from obtaining a grant of probate, to identifying and distributing assets according to the terms of a Will.
Furthermore, our existing detailed knowledge of a client’s financial affairs means that we can act quickly and effectively on probate matters with consequent cost benefits.