×

HOW TO BECOME A CLIENT

1 EMAIL OR CALL US.
2 ARRANGE MEETING.
3 BECOME A CLIENT

If you have any problems, please let us know, by sending an email to info@rmiaccountancy.com. Thank you!

OFFICE HOURS

Mon-Fri 10:00AM - 5:00PM
Saturday by appointment only!

SIGN IN YOUR ACCOUNT TO HAVE ACCESS TO DIFFERENT FEATURES

FORGOT YOUR PASSWORD?

FORGOT YOUR DETAILS?

AAH, WAIT, I REMEMBER NOW!
QUESTIONS? CALL: 0161 9137 958
  • LOGIN
  • SUPPORT

RMI Accountancy

RMI Accountancy

City firm of financial and forensic accountants

T 0161 4137 958
Email: info@rmiaccountancy.com

RMI Accountancy
Blue Tower, Media City, Manchester, M50 2ST

Open in Google Maps
  • HOME PAGE
  • ABOUT US
    • ABOUT US
    • Our Team
    • Our Testimonials and Reviews
  • SERVICES
    • FORENSIC ACCOUNTING
      • Forensic Accounting
      • Forensic Investigation
      • Fraud Risk Assessment
      • Fraud Prevention Plan
      • Forensic Audit
      • Forensic Services Guarantee
      • Forensic Accounting – Posts
    • Accounting Solution
      • Accounting
      • Contractor and Freelancers
      • Tax Planning
      • Payroll
      • Business Growth Analysis
      • Book-Keeping
      • Company Formation
      • Guidance for businesses
    • Media & Celebrities
      • Accountancy for TV, Film, Sports & Media
      • Trusted and Reliable Accountancy Services for Media Clients
      • Wealth Management
      • Property Tax Planning
    • Specialist Accounting Solutions
      • Dental Practices
      • Optical and Pharmaceutical Practices
      • General Medical Practices
  • CASE STUDIES
    • A Success Story
    • Case Studies
    • The Path to Success – Becoming a Client
    • Tax updatesTax updates
    • BLOG & STORIES
  • LIBRARY
  • CONTACT
FREECONSULTATION
  • Home
  • BLOG & STORIES
  • Inheritance Tax
  • Inheritance tax thresholds likely to be frozen
June 6, 2023

Inheritance tax thresholds likely to be frozen

Inheritance tax thresholds likely to be frozen

by admin@rmiaccountancy.com / Wednesday, 09 November 2022 / Published in Inheritance Tax

Government plans to tackle the fiscal black hole are likely to see inheritance tax (IHT) thresholds frozen until 2028

With the Autumn Statement scheduled for 17 November, the Chancellor Jeremy Hunt is set to freeze inheritance tax thresholds at the current £325,000 for the next six years.

Although only a small percentage of estates pay inheritance tax, it is an unpopular tax. IHT raised £6bn in tax year 2021/22, up from £5.2bn the previous year.

Unsurprisingly freezing the IHT threshold is on the menu for tax cuts; after all, it has not increased since 2008 when it was £312,000. The last increase to the residential nil rate band was in April 2020, when it went up to £175,000. 

A recent YouGov poll commissioned by law firm Kingsley Napley LLP shows little support for the government bolstering tax take from IHT, despite the current pressure on public finances.

Two thirds (67%) of respondents to the poll on IHT opposed raising the current 40% rate, with only 16% in favour of a rise. A similar 63% supported raising the £325,000 threshold at which the estate of the deceased is required to pay the tax. However, 48% were in favour of abolishing IHT completely.

James Ward, partner and head of private client at Kingsley Napley LLP, said: ‘IHT is regarded by some as a double taxation given people already pay income tax during their lifetime and is often described as one of the most hated taxes.

‘Our survey results show attitudes on this are clearly not swayed by the current economic situation – a majority would oppose increasing inheritance tax rates and, further, even support the idea of raising the threshold at which IHT kicks in. If the government is tempted to tamper with IHT rules as part of the effort to plug the public finance gap, it may need to think again.’

Rising house prices have contributed to the hike in the number of estates caught by IHT.

Ward added: ‘Decades of house price growth across the UK has meant more and more households have found they fall into the threshold for paying IHT because the nil-rate band has been frozen since 2009. Whilst some have suggested the bands should be reviewed in line with inflation, downward pressure on house prices may go some way to ease the burden on tax payers without the need for regime change.  

‘Whatever the future ahead for IHT, those in scope for paying it should take legal advice and ensure they have considered some form of planning.’

Steps lawyers may recommend to reduce IHT liabilities include:

•            capital gifting: sizeable transfers seven years before death; 

•            income gifting: eg, contributing to grandchildren’s school fees or an offspring’s mortgage;

•            exemptions: using all nil rate bands. Business relief in particular can lead to big savings;

•            life insurance: arranging for this to be paid out to family members (insurance pays the tax);

•            SKIing: spending the kids inheritance.  

0
  • Tweet
Tagged under: Inheritance, tax

About admin@rmiaccountancy.com

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Redundancy protection extended for parents

    Parents and unpaid carers are due to receive ne...
  • HMRC issues scam warning to tax credits claimants

    Tax credit claimants need to be on their guard ...
  • Late interest penalties hit 1.4m taxpayers

    More than 1.4 million taxpayers had to pay inte...
  • Landlord registration plan will drive HMRC investigations

    The launch of a landlord database outlined in t...
  • Airbnb owners will have to pay VAT on rentals across EU

    An overhaul of EU rules will affect Airbnb land...

Recent Comments

    Archives

    • May 2023
    • March 2023
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • December 2018
    • November 2018
    • January 2018
    • November 2015
    • August 2015

    Categories

    • Accounts
    • Annual Investment Allowance
    • Bounce back loan
    • Brexit
    • Budget
    • Budget 2021
    • Business grants
    • Business Rates
    • Business Support Finder Tool
    • Capital gains tax
    • Carer's Leave
    • Corporation Tax
    • Covid booster programme
    • Covid Restrictions
    • Eat Out to Help Out
    • Employment
    • Filing Deadlines
    • Flexible working
    • Fuel Rates
    • Furlough scheme
    • HMRC
    • Home Working Tax Relief
    • Inflation
    • Inheritance Tax
    • Interest Rates
    • IR35
    • Job Retention Scheme
    • Job Support Scheme
    • Kickstart Scheme
    • Making Tax Digital
    • Mobile
    • National Insurance
    • National Wage Rates
    • Networking
    • PAYE
    • Pension
    • Recovery Loan Scheme
    • Research & Development
    • Self Assessment
    • self employed scheme
    • Stamp Duty
    • Statutory Sick Pay (SSP)
    • Tax Credits
    • Tax Fraud
    • Tax Investigation
    • Tax Relief
    • Tax return
    • Technology
    • Uncategorized
    • VAT
    • Virtual Accountancy Services
    • Working Tax Credit

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Featured Posts

    • Redundancy protection extended for parents

      0 comments
    • HMRC issues scam warning to tax credits claimants

      0 comments
    • Late interest penalties hit 1.4m taxpayers

      0 comments
    • Landlord registration plan will drive HMRC investigations

      0 comments
    • Airbnb owners will have to pay VAT on rentals across EU

      0 comments

    GET A FREE QUOTE

    Please fill this for and we'll get back to you as soon as possible!

    FOOTER MENU

    • About us
    • Our Team
    • Forensic Accounting
    • Tax Planning
    • TV, Film, Sport and Media
    • Wealth Management
    • Case Studies
    • Advisory
    • Contact Us

    NEWSLETTER SIGNUP

    By subscribing to our mailing list you will always be update with the latest news from us.

    We never spam!

    GET IN TOUCH

    T (0161) 4137958
    Email: info@rmiaccountancy.com

    RMI Accountancy
    Blue Tower, Media City, Manchester, M50 2ST

    Open in Google Maps

    © 2019-2020. All rights reserved. Web Design - by Web & Print Media

    TOP
    Skip to toolbar
    • About WordPress
      • WordPress.org
      • Documentation
      • Support
      • Feedback
    • Log In