HMRC collects record £5bn in inheritance tax

HMRC collects record £5bn in inheritance tax

HMRC collected a record £5.1bn in inheritance tax in the year June 2016 to May 2017, according to private client law firm Wilsons

HMRC collected a record £5.1bn in inheritance tax in the year June 2016 to May 2017, according to private client law firm Wilsons.

The record amount represents a 9% rise when compared to the previous year’s figure of £4.7bn.

Wilsons said that more estates are now subject to the tax given the inheritance tax threshold freeze at £325,000. The current rate stands at 40%.

Tim Fullerlove, partner at the firm, warned that some families could be left with large inheritance tax bills. He said: “A substantial amount of wealth is now being taken by the government through IHT. What upsets people is that this is wealth that is being taxed twice.

“It is important that people start planning as early as possible how they mean to pass their wealth on to their children or grandchildren. If they do not do this, families could be met with large IHT bills.”

In May this year, UHY Hacker Young said that Inheritance tax relief claimed on charitable donations was predicted to reach £900m next year.

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3m

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

7m

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

2m

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3m

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource