UK inheritance tax (IHT) receipts
HM Revenue and Customs has collected £3.9billion in inheritance tax (IHT) from April to September 2023. This is up £400million from the same period last year.
With the current nil rate band (NRB) frozen until at least 2028, the IHT receipts are likely set to increase. The original forecast of the Office for Budget Responsibility (OBR) was that 2023/24 receipts would raise £7.2billion, now looks likely to be an underestimation.
IHT is chargeable both on death and during an individual’s lifetime on certain gifts. It usually only impacts those with an estate worth more than the NRB, currently £325,000, and the main rate is 40%.
The Institute for Fiscal Studies (IFS) have put forward some proposals for the reform of IHT that include abolishing the residence nil-rate band, increasing the NRB, reducing the main rate of tax from 40% to 25% and bringing pensions within scope of IHT.
Synergi have a number of trust solutions that can be used for an individual that is looking to mitigate UK IHT as part of their investment objectives.
