Tax receipts from inheritance rise by 15%
According to new analysis by Prudential of the latest HMRC data, there was a 15% increase in inheritance tax paid in the 2012 to 2013 tax year.
Almost 18,000 estates faced an average bill of more than £170,000, and the total paid was £3.05bn - as opposed to £2.65bn in the previous tax year.
There were 280,000 estates reviewed by HMRC in the 2012 to 2013 tax year, and according to Prudential there was no rise in the proportion of estates becoming liable to pay inheritance tax. However, there was a word of warning about tax planning for families in light of the new figures.
Tax specialist at Prudential Les Cameron said: “As the total amount of inheritance tax paid increases, so does the value of careful tax planning for anyone looking to cascade as much of their wealth to their families as possible."
“Planning for inheritance tax is at its most valuable when it is done early and has become increasingly important with the additional options and complexities brought about by the new rules allowing individuals to pass on pension savings to family members,” Cameron explained.
From April 2017, individuals will be able to take advantage of a family home allowance in addition to the existing personal £325,000 inheritance tax allowance.
The new measure will be phased in over a period of time, and by the 2020 to 2021 tax year, it will be worth up to £1m for a married couple or those who have entered into a civil partnership.