Inheritance tax revenue is growing at an alarming rate. According to the latest statistics available from the Office for National Statistics, approximately £3.825 billion in inheritance tax was paid in the 2014-2015 tax year, compared with approximately £2.724 billion in the 2010-2011 tax year. This represents an increase of over 40% over the space of just four years.
The laws surrounding inheritance tax have also changed significantly over the past ten years, meaning that suitable planning for inheritance tax has had to move with the times. Changes to the transfer of the tax free amount (the Nil-Rate Band) in 2007; changes to the taxation of pensions occurred in 2015 and onwards and the introduction of a new relief that came into effect earlier this year, are just a few examples of the changes that have affected the best possible planning for inheritance tax.
We would recommend that your Will is reviewed every two years, or on the occasion of a major event such as marriage, divorce or on the birth/death of friends, family and loved ones.
Those who have taken advice regarding inheritance tax previously may find that their Will, trust or other financial arrangements may no longer be the most efficient in minimising the amount of inheritance tax payable by your estate.
Stephensons offers advice appointments surrounding clients’ inheritance tax planning and taking professional advice could lead to significant inheritance tax savings.
If you would like further details on how we may be able to assist you, please do not hesitate to contact our Wills and probate department on 0175 321 6399.