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New figures reveal rise in inheritance tax receipts

 

HM Revenue & Customs (HMRC) netted almost £3bn from inheritance tax (IHT) in 2011/12, latest figures suggest.

 

Recent press reports indicate that the tax authority collected £2.91bn from IHT in 2011/12, compared with £2.72bn in 2010/11.

 

Meanwhile, the number of individuals paying IHT is thought to have climbed from 17,000 last year to around 20,000 this year.

 

IHT is currently payable where a person’s wealth is in excess of £325,000. This threshold, commonly known as the IHT nil-rate band, has been frozen until 2014/15.

 

However, in his recent Autumn Statement, the Chancellor George Osborne announced that the nil-rate band will rise by 1% in 2015/16 to £329,000.

 

Assets in excess of the nil-rate band amount are taxed at 40%, although a reduced IHT rate of 36% applies from April 2012 to death estates, where 10% or more of the net estate is left to charity.

 

With careful planning, it may be possible to reduce your liability to IHT. Please contact us for advice.