IHT Rises in 2017 Despite New Tax Reliefs

Despite the recent launch of the residence nil-rate band, inheritance tax payments have risen sharply between April and August of this year.

According to the latest figures from HM Revenue & Customs, this year has seen a rise of 18.7% in inheritance tax being paid.

The residence nil-rate band was launched this April to help savers pass over more of their family home free from inheritance tax. However, since this was introduced, tax receipts have still shot up by almost £375m in comparison to last year.

This may be, according to experts, due to the increasingly complex system of tax reliefs that are available to families. This may mean that families are paying more than they should be as they may not realise the options that are available to them, and are failing to apply for certain tax reliefs such as the residence nil-rate band.

There are many ways inheritance tax can be reduced, for example, setting up wills, investing, making use of gifts allowances, and more. However, we recommend anyone looking to reduce the impact of inheritance tax on their family look into seeking advice on the topic in order to find out what the best solution is for them.

If you’re interested in finding out more about reducing inheritance tax, new tax rules and inheritance tax reliefs, talk to our financial advice team. Please call us on 01926 492406 or email us at enquiries@klofinancialservices.com to make an appointment.