The latest statistics from HMRC for 2022/23 show a clear message: more families than ever are facing Inheritance Tax (IHT) bills. Without careful planning, your estate could be one of them.
Despite IHT still applying to fewer than one in twenty estates, 31,500 estates paid the tax in 2022/23 – up 13 per cent from the previous year.
The total IHT bill reached £6.7 billion, an increase of £710 million year on year, driven by rising asset values, frozen thresholds, and the residence nil rate band (RNRB) being held at 2020/21 levels.
Why this matters to you
While the headline rate of IHT is 40 per cent, the average effective rate is closer to 13 per cent, thanks to reliefs, exemptions, and tax-free allowances.
However, these savings only happen with careful, proactive planning – something too many families overlook until it’s too late.
Without a strategy in place, you could see a significant portion of your estate lost to tax, rather than passed to your loved ones or chosen causes.
The recent fall in reported charitable giving (from £2.07 billion to £1.92 billion) also highlights the risk of good intentions being missed without proper structuring.
How Rotherham Taylor can help
Our expert tax, estate planning and probate team can:
- Maximise available allowances and reliefs to reduce your IHT bill
- Structure your assets to make full use of the residence nil rate band and other exemptions
- Ensure your Will reflects your wishes and is tax-efficient
- Support you in making lifetime gifts and charitable donations in a way that benefits both you and your beneficiaries
- Guide your family through the probate process, ensuring your estate is managed and distributed efficiently
The earlier you act, the more options you have to protect your wealth. If you would like to get your affairs in order and explore ways to reduce your potential IHT liability, speak to our team today.
