NO MENTION OF INHERITANCE TAX IN THE RECENT BUDGET!

Why is a IHT General Simplification Review needed?

The amount of IHT collected by HMRC has risen dramatically in the last few years and hit a record £5.3 billion in the 2017/18 tax year. This was a 13% increase in comparison to the £4.6 billion collected in 2016/17. With the rise in the number of estates subject to IHT, this review is very timely and will hopefully ensure that IHT is simpler to understand in the future.

A case earlier this year highlighted the lack of understanding when it comes to dealing with IHT as part of administering an estate. The Personal Representative, Mr Harris, was left with a staggering IHT bill of more than £340,000. Mr Harris was administering a £1.2 million estate and misguidedly distributed the assets to the beneficiaries before all of the IHT had been paid. Mr Harris’ case shows how a mistake or misunderstanding in regards to IHT can be of great consequence to Personal Representatives.

Don’t get caught out-check what your position is with professional advice.

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