How much does inheritance tax cost you? HMRC is taking more of your money through taxes.
Today, HMRC revealed its most recent tax collections and National Insurance contributions statistics, which included a review of inheritance tax (IHT) figures. The controversial tax brought in more money to the government’s coffers between April and June 2021.
The estate of someone who has died and is passing on their assets is normally subject to inheritance tax. When an estate is worth more than £325,000, IHT is imposed, and it is normally levied at 40%.
IHT is a controversial tax in the United Kingdom, and it is commonly referred to as a “death tax.”
Many savers believe it is wrong for the government to take a significant portion of a family’s inheritance when assets are passed down, and HMRC demonstrated just how costly this can be today.
HMRC reported £1.5 billion in IHT receipts from April to June 2021.
This is £400 million more than the same period last year, representing a 33% gain.
Smith & Williamson’s Head of National Tax, Ami Jack, studied the numbers and speculated on what they may indicate for the Chancellor’s plans.
“According to newly released figures from HMRC, IHT receipts for April to June 2021 were £1.5 billion, up £0.4 billion from the same time a year ago,” Ms Jack said.
“At a time when it is far from certain how the pandemic will play out in the coming months and what the final bill to fund the Chancellor’s economic support schemes will turn out to be, this 33 percent year-on-year increase indicates that IHT collections are starting to become more lucrative for the Treasury.
“There has been speculation for some time that an Autumn Budget would be announced, which would have been an ideal moment to enact tax reforms to assist pay for the pandemic’s costs.
“Recent murmurs circulating around Westminster, on the other hand, suggest that a Spring Budget may be more likely to allow the Treasury to assess the economic impact of the current coronavirus outbreak.”
Ms. Jack went on to explain how to handle IHT bills.
“Whatever the date of the next Budget, families should take advantage of the chance to seriously consider their tax planning and make the most of their present allowances before possible reforms are introduced,” Ms Jack added.
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