Figures out today show that HMRC raked in another £3.5 billion in inheritance tax receipts in the six months to September 2022. This is £400 million more than in the same period last year and continues the upward trend.
While hopes were raised in the Conservative leadership contest, after the recent whirlwind of announcements and U-turns cutting IHT is probably at the very bottom of the government’s list of priorities. For the super rich inheritance isn’t a problem because you can place assets into trusts (Grosvenor family for example) or charity foundations, ( Clintons, Blair, BLM etc) to avoid most inheritance related taxes. But it seems likely that globalists will seek to continue the wealth transfer that began in earnest during Covid, effectively taking more from the working and middle class, to give to the rich and to the non-working poor.
The solution for those who own property in the South East of the UK and might have other assets is to speak to a HNW broker and get some valuable advice.
Alex Davies, CEO and Founder of Wealth Club said: “The government’s inheritance tax take seems to be increasing relentlessly, largely thanks to the steady increase in house prices in recent years pushing more family in the IHT danger zone. With all that’s going on in Downing Street, we can’t see that there is any chance that this money-spinner will be reduced or abolished any time soon.
The OBR has already predicted that next year IHT will bring in £6.7bn and while only 1 in 25 estates currently pay this tax, for those that are picking up the tab, we think the average bill could reach £266,000 for the current tax year.
The increase is being driven by soaring house prices and years of frozen allowances. Rampant inflation will magnify the effect of freezing allowances in the years ahead. Without some review of the rules, more and more families are going to find themselves hit by death duties they might not expect.
The good news is that with some careful planning there are lots of perfectly legitimate ways you can eliminate or keep IHT bills to the minimum, so more of your wealth is passed on to your loved ones rather than being syphoned off by the taxman.”
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