The amount of Inheritance Tax (IHT) paid by families has dramatically increased over the past decade. According to the Office for Budget Responsibility (OBR), IHT receipts are projected to reach £8.3 billion in 2024/25, increasing to £13.9 billion in 2029/30.
The increase is largely a result of rising asset values, unchanged IHT thresholds, and many families neglecting the tax planning opportunities available.
Independent Financial Adviser, Jason Lloyd comments:
“The government’s increasing reliance on ‘fiscal drag’ – where frozen thresholds have left taxpayers paying more – has boosted tax revenues without political fallout, but with IHT thresholds set to rise in April 2030, taxpayers can finally look forward to some welcome relief.”
In part 1 of our Inheritance Tax blog series, we explore strategies to protect your family’s financial future.