Changes to Inheritance Tax - Will you be affected?
- 21st February 2022
The Spring 2022 Budget will be delivered by The Chancellor on 23 March 2022 and once again it is rumoured that there may be changes to inheritance tax (IHT).
Even if there are no new announcements, more Estates are being dragged into the net simply because we know there will be no increases to the nil rate band (frozen at £325,000 since April 2019) or the residential nil rate band (capped at £175,000 since April 2020) until at least April 2025.
Rising property prices will push more Estates into the tax net and figures from the Treasury indicate that an extra £1bn will be raised through inheritance tax. Despite it only affecting 4% of deaths in the UK, inheritance tax is probably the most disliked tax of all. Put simply, it is a double tax as it applies to your wealth on death even though you have paid tax on your earnings and investments during your lifetime.
Thankfully there are many ways that you can look to reduce your inheritance tax exposure by effective lifetime planning. We have experts who can help keep a bigger slice of your wealth away from the tax man. Contact us today should you wish to discuss this topic further.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.