Posts Tagged ‘Inheritance Tax’

Inheritance tax payments reach record high: how to protect yourself

Sunday, January 8th, 2017

inheritance-tax-forms

The amount of the money the UK government has received from inheritance tax (IHT) has reached £4.7 billion for the year ending 31 October. This is up 11.9 per cent from a total of £4.2 billion in the year ending 31 October 2015.

According to Wilsons, a law firm that specialises in private client law (among others), more and more people’s estates are leaving the tax free threshold behind due to the inflation in house prices, along with a freeze on the threshold level itself.

Essentially, owners of modest homes have found themselves being grouped with the rich.

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Inheritance tax shocker: Some families will pay 80pc

Tuesday, January 3rd, 2017

Sky high: this seven-storey Georgian house is £14 million with Harrods Estates

Despite Government claims that family homes will be passed on free of inheritance tax from April, some children and grandchildren will find they are left with an 80pc tax bill. Former Chancellor George Osborne unveiled the new “residence nil rate band” which is given in addition to the usual inheritance tax allowance of £325,000 per person. From April 2017 each person will have an extra £100,000 allowance to add to the £325,000. This is set to gradually rise until the residence allowance reaches £175,000 in 2020/21, giving a total IHT-free limit of £1m for a couple.

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One in four homes ‘now over inheritance tax threshold’

Saturday, October 1st, 2016

One in four homes 'now over inheritance tax threshold'

The government’s changes to the inheritance tax rules are good news as property prices continue to rise. New research has found that the number of homes that are worth more than the current inheritance tax threshold has reached a record high.When you die, inheritance tax is currently due on 40% of the value of your estate above £325,000, or £650,000 for married couples or those in a civil partnership. Saga Investment Services found that, so far in 2016, more than one in four properties were purchased at a value that exceeds the inheritance tax ‘nil-rate band’. This compares to 13% of properties in 2009 when the band was first set. The research highlights how the impending shakeup to IHT rules, which will see a new nil-rate band introduced in April 2017 for those passing on their main home to a direct descendant, is urgently needed.

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Jane Ellison takes over from Gauke as ‘tax minister’

Thursday, August 18th, 2016

HMRC banknotes

A new ‘minister for tax’ has been appointed following the government reshuffle by new prime minister Theresa May. Jane Ellison, Conservative  MP for Battersea, has been named financial secretary to the Treasury – under which tax policy is likely to come under her remit. Ellison has served as public health minister for the past three years. She takes on the Treasury-based remit from David Gauke, following a successful term in which he has been well-received by the tax profession for his efforts. He steps up to chief secretary to the Treasury, a role that will see him support new chancellor Philip Hammond.

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Calls to end inheritance tax grow as it snatches £4.7bn

Thursday, August 18th, 2016

HMRC letter / couple going through documents

PRESSURE for inheritance tax to be abolished have been increased after new figures revealed that the tax man took an extra 20 per cent in profits from death last year.

According to HMRC £4.7 billion was collected in 2015/16 up from £3.8 the year before, the biggest rise in the last five years.  According to the figures the amount collected has risen almost £2 billion since 2011 the first full years the Tories were in power despite modest reforms to the collection regime.  And with early signs that the decision to leave the EU is going to create an economic and property boom, concerns have been raised that more people will be dragged into paying the iniquitous tax despite Government changes to the threshold. The Daily Express has been running a crusade to end inheritance tax and allow people to pass on their hard earned savings to their children.  According to investment specialists Hargreaves Lansdown the booming housing market is likely to have increased the percentage of property as an overall proportion of each estate, particularly in London and the south east but also in large parts of the north of England and Midlands.  The company -which provides advice on legally avoiding inheritance tax – has pointed out that in 2012/13 17,917 estates paid an average £175,000 of inheritance tax while 3.1 per cent of all deaths pay ended up being dragged into the levy.

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Owen Smith would slap wealth tax on top earners and scrap cuts to inheritance and capital gains levies if he became PM

Thursday, August 18th, 2016

Owen Smith

Jeremy Corbyn’s rival tried to seize some of the leader’s socialist ground with the idea, which would also end cuts to inheritance levies

Labour leadership hopeful Owen Smith would slap a wealth tax on top earners and scrap cuts to inheritance and capital gains levies if he became Prime Minister, he revealed. Jeremy Corbyn ’s rival for the top job vowed to raid the biggest wallets as he tried to seize the socialist mantle from the current party boss. Mr Smith also pledged to axe the Department for Work and Pensions and replace it with a Ministry for Labour and a Department for Social Security. But he faced sexism claims after using his speech to say Labour should take on Theresa May and “smash her back on her heels”. Questioned over his language, the former Shadow Work and Pensions Secretary insisted: “We should be smashing the Tories back on their heels. “Their ideals, their values – let’s smash them, let’s get Labour in. It’s rhetoric, I don’t literally want to smash Theresa May back on her heels. “I’m not advocating violence in any shape or form.”

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‘Abolish IMMEDIATELY’ Calls for inheritance tax to be SCRAPPED intensify

Thursday, August 18th, 2016

Funeral

CAMPAIGNERS last night renewed calls for inheritance tax to be scrapped after it emerged nearly 30,000 families face huge bills because of simple “bad luck”.

The “unlucky generation” of families are among those paying inheritance tax in the two years from April 2015 who will miss out on new legal changes because tax inspectors are taking too long to implement them. While some campaigners called for the 28,000 families affected to be compensated by the Government, others claimed the situation showed it was time for the duty to be scrapped altogether. Jonathan Isaby of the TaxPayers’ Alliance said: “Inheritance Tax is a pernicious tax which hits families at the worst possible time.

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Inheritance Tax (IHT) Plan to legally save £100,000s on your estate

Monday, May 23rd, 2016

Inheritance Tax (IHT) Plan to legally save £100,000s on your estate

Inheritance tax can cost loved ones hundreds of thousands in the event of your death, yet it’s possible to legally avoid huge swathes of it, or possibly pay none at all.

The most important thing to do is to examine whether you’ll pay inheritance tax and what to do about it; and this quick Q&A guide is here to do just that. We’ve now updated it to include Government proposals to give people an extra property allowance from April 2017.

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Will the new inheritance tax rules affect you?

Monday, May 23rd, 2016

Will the new inheritance tax rules affect you?

Last year, George Osborne announced his plans to gradually increase the IHT threshold to £1 million – to help reduce the amount of families paying the 40pc death duty. But the following factors suggest this may not be available to everyone and you could still be liable:

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