ADVERTISING FEATURE
Over the threshold Record Inheritance Tax bills are a reminder of the need for good estate planning. T
here are few more confusing – or unpopular – taxes than Inheritance Tax (IHT). For older
generations, the prospect of paying up to 40% tax on what they leave behind is difficult to contemplate. For some children and grandchildren, grappling with IHT is something they are ill-equipped to do.
Yet more and more families are having to deal with IHT. The latest figures from HMRC show that the government collected £5.1 billion in IHT in the 12 months to May 2017 – up 9% on the same period in the previous year1
. IHT is set to be even more
of a money-spinner for the government in future; the Office for Budget Responsibility predicts that receipts will increase to £6.2 billion by 2020/21.
The rise in death duties reflects the surge in residential property prices, as well as the strong recovery in other asset values, which has dragged more households into the IHT net. The OBR reports that housing assets now account for around half of the value of estates notified for probate, highlighting the impact that rising property prices have had on IHT receipts. Meanwhile, the IHT nil- rate band has remained fixed at £325,000 per person (£650,000 for couples) since 2009, so it’s not surprising that the number of families paying IHT has risen.
At the heart of this problem remains the simple fact that IHT is a voluntary tax; the Treasury relies on inertia and people’s reluctance to confront the issue. The result is the record level of revenue generated, money which could instead stay in the family to support future generations.
The boost to the Treasury’s coffers is a reminder of the damaging
effect death
duties can have on families’ plans to create and pass on wealth, and also that there are perfectly legitimate ways of mitigating IHT through foresight and careful financial planning. The mitigation of IHT does not require high-powered tax planning; only a willingness to discuss the issue, take action and make use of the many options available, such as establishing trusts where appropriate, and making use of annual exemptions like gifting.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.
Thomas Rigg Wealth Management Ltd will be holding no obligation Wealth Preservation
Appointments on 29
November at the Parallel House, Guildford. If you are uncertain about how you stand
Associate Partner Practice of St. James’s Place Wealth Management THOMAS RIGG WEALTH
MANAGEMENT LTD
Tel: 01483 202206 Email:
thomas.rigg@sjpp.co.uk Web:
www.thomas-rigg.co.uk
Thomas Rigg Wealth Management Ltd is based locally and is inviting Surrey Magazine
readers to discover the simple yet highly effective steps you can take to protect your wealth and stay in control - helping the right amount of it pass to the right people at the right time.
Wealth Preservation appointments are being held, strictly by
appointment only, on 13 December 2018 and 23 January 2019 at the
Parallel House, Guildford, Surrey from 10.00am to 6.00pm. All appointments last approximately 45 minutes and are held in the strictest confidence without obligation.
Call 01483 202206 for more
information or your complimentary guide to Inheritance Tax.
regarding IHT and would like to know more about how to prevent much of your money falling into the hands of HMRC, or your local authority through long term care fees, book your consultation today.
For further information or to request your complimentary guide to Inheritance Tax, please contact Thomas Rigg Wealth Management Ltd of St. James’s Place Wealth Management. Thomas can be contacted by phone on 01483 202206 or by email on
thomas.rigg@sjpp.co.uk
1 HMRC Tax & Receipts, 21 June 2017
Trusts are not regulated by the Financial Conduct Authority.
The Partner Practice represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website
www.sjp.co.uk/products. The title ‘Partner Practice’ is the marketing term used to describe St. James’s Place representatives.
H2SJP30522 11/18
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