Recent reports indicate that more people are paying inheritance tax now than at any time over the previous ten years. In 2016-17, more than 28,000 estates had to pay inheritance tax.
Inheritance tax receipts in 2018-19 reached £5.4 billion, their highest level ever. The level of revenue raised has increased every year since 2009.
Over the same period, the overall value of deceased’s estates has also increased to over £80 billion, having grown by more than £15 billion since 2009. Much of the increase is attributed to the rise in average house prices which have increased by almost 50% since 2009. 2017 saw the introduction of an additional inheritance tax nil rate band which might be set against a residence passing to direct descendants. It is intended to mean that spouses and civil partners who can combine their inheritance tax allowances will (by 2020-21) be able to pass up to £1 million to their family tax free. Single people or those without direct descendants do not benefit from the additional allowance.
45% of inheritance tax is paid by estates in London and the South East, perhaps reflecting the disparity in property prices between different areas of the country.
For further information please contact our experienced Wills, Probate and Estates team directly
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