It’s no secret. Inheritance tax has remained a growing problem over recent years – with annual revenue reaching a record-breaking high of £4.7 billion during the 2015/16 tax year.
Despite the onset of new rules, it isn’t set to improve anytime soon. In fact, financial advisers predict a greater demand for advice on inheritance tax – according to May 2017 research by Prudential.
The study found that 69% of advisers estimate a growth in their customers’ need for advice on inheritance tax planning. And 77% have already witnessed a rise, with 37% forecasting significant increases.
Why the increase in demand?
In addition to rising property prices, almost 60% of advisers blame part of this rise on the new inheritance tax rules introduced in April 2017 – which instigated certain complexities.
Under the new rules, you may be entitled to an allowance – currently worth £100,000 – that can be used in addition to the existing inheritance tax nil rate band, to pass on any property you own and have lived in at some point (not including buy-to-let homes).
However, not everyone can benefit from this allowance. For instance, it can only be used to pass your home onto a direct descendent, such as your child or grandchild. Not another relative or family member.
|The Office for Budget Responsibility has forecasted that £27.7 billion will be collected overall in inheritance tax revenue over the next five years – which is £2 billion more than what was originally predicted last November.|
Worried about inheritance tax? We can help
If you’d like to speak to a financial adviser about inheritance tax, we’re here to help you.
Through a quick consultation over the phone, we can provide you with a greater understanding on the rules and help you establish whether you could be affected.
If necessary, your local Skipton financial adviser can meet with you to discuss your situation and look at how you may be able to address your potential inheritance tax problem. The recommendations provided will be personal to your situation and it’s entirely up to you whether you wish to proceed.
By speaking to us today, we can help kick-start your inheritance tax plans – and provide all the advice and support you need making sure the legacy you leave behind is left to your loved ones.
For peace of mind over your family’s future, call our specialist team now on 0800 731 5342.
It’s important to be aware that some inheritance tax planning solutions may put your capital at risk – so you may get back less than you originally invested. Some areas of inheritance tax planning are not regulated by the Financial Conduct Authority. Thresholds depend on your individual circumstances and prevailing legislation, both of which may change in future.