Amid renewed debates over IHT, Charles Richardson explains what individuals and practitioners should be aware of
It will be hard to find many people outside the treasury who like the idea of inheritance tax (IHT). Historically used as a means to fund specific projects, e.g. the wars with Napoleon in 1796, IHT now makes up an essential and consistent component of the government’s tax receipts.
Increased asset values, particularly the steep UK house price growth in recent decades, mean IHT receipts are increasing to record levels annually, with another high predicted for 2022/23, as well as the number of estates now caught by the rules and paying tax.
It is hardly surprising the government wishes to cash in on these long-term value increases through IHT, when it offers them such an easy way of doing so. Although a YouGov survey comm...
“Surveys suggest a majority would oppose increasing IHT rates and would even support the idea of raising the threshold at which IHT kicks in.”
