HMRC taking ‘more aggressive approach’ to collecting IHT
HM Revenue & Customs (HMRC) appears to be taking a ‘more aggressive’ approach to collecting Inheritance Tax (IHT) in the UK, after a new report revealed that the IHT receipts surged by more than 20 per cent in the first four months of the current tax year.
The tax authority’s own data has revealed that total receipts were recently up by six per cent year-on-year, after reaching a record-breaking £11.2 billion.
Meanwhile, analysis of HMRC’s data suggest that almost £2 billion was taken from people’s estates between April and July 2017 alone.
HMRC’s report read: “Receipts rose steadily until 2007/08 due to increases in the value of tax-liable assets in this period, particularly in the value of residential property. Receipts then fell sharply due to both the introduction of the Transferable Nil Rate Band for deaths occurring from October 2007 and a fall in the value of residential property in the second half of 2008 and in most of 2009.
“Since 2009/10, receipts have increased both in terms of annual revenue and as a proportion of GDP.
“Receipts increased substantially in 2015/16 as a result of rising asset values and a higher number of deaths in the final months of 2014/15 compared to the same period in previous years.”
The report highlights the growing need for Britons to seek specialist legal advice in terms of mitigating their IHT liability.
A specialist solicitor can offer an assessment of your existing IHT position and provide tailored advice in relation Wills and IHT planning.