HM Revenue & Customs has reported that total inheritance tax receipts were £5.35 bn for the 2020/2021 financial year.
This is a 3.68% rise from the previous year.
In the tax year 2018 to 2019, London and the South East accounted for 53% of the total inheritance tax charged across England. The average tax paying estate in London paid £271,800.
With the continuing increase in house prices locally, many more estates could be pushed into the bracket where inheritance tax is chargeable.
In the tax year 2018 to 2019 the top four exemptions from inheritance tax were:-
- Transfers between spouses and civil partners;
- Transfers to qualifying charities;
- Business property relief;
- Agricultural property relief.
It is interesting to note that in the tax year 2018 to 2019 only 2,040 estates benefitted from the reduced 36% Inheritance Tax rate available for estates where at least 10% of the value of the estate is left to qualifying charities.
Inheritance Tax thresholds have been frozen up to and including 2025/2026 and therefore estate planning remains vital for those with a potential inheritance tax liability. If you need specialist advice in this area please do contact the Private Client team at Barrett & Co Solicitors in Reading.
As part of our Will writing service we will normally discuss the Inheritance Tax position of your estate, to ensure that through appropriate Will drafting your estate can take advantage of all the relevant exceptions or exemptions.
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Vanessa Ruparel offers a fixed fee initial meeting of one hour to discuss your personal circumstances, your options and your next steps, at a cost of £95 (inc VAT).
Vanessa will meet you in our Reading Berkshire office, alternatively meetings can occur by telephone. If you would like to meet with Vanessa please telephone the office so that an appointment can be arranged.
Vanessa is a Solicitor specialising in Wills, Lasting Powers of Attorney and the administration of estates.