IHT BROCHURE (1) - Flipbook - Page 4
Inheritance Tax (IHT), often regarded as Britain’s most controversial levy, is increasingly
making headlines. While IHT has historically played a signi昀椀cant role in the country’s
昀椀nancial fabric, recent developments indicate a transformation that’s both rapid and
impactful. A deeper dive into the current trends and numbers presents a clearer picture.
IHT Receipts on the Rise
The recent surge in IHT receipts by a staggering £400m from the previous year is not
a mere anomaly. This development is a part of a more signi昀椀cant trend that has been in
motion for over a decade. The continuous and considerable appreciation of house prices in
the UK has been a crucial factor driving this growth. Many homeowners 昀椀nd their estates
ballooning in value due to the buoyancy of the real estate market.
Compounding this scenario is the government’s stance on IHT allowances. For years now,
these allowances have remained frozen, leading to a de facto tax hike for many, especially
when considering inflation and rising asset values. This freeze has inadvertently increased
the number of estates under the IHT purview.
Potential Impacts on Families
But what do these numbers mean for the average UK family? The rami昀椀cations are farreaching. Wealth Club’s recent analysis paints a sobering picture. They project that by the
end of the 2023/24 tax year, the average IHT bill could soar to an alarming £233,000. This
isn’t just a statistic on paper; it represents real 昀椀nancial implications for families trying to
pass on their life’s work to the next generation.
Moreover, the sheer number of families affected is also set to grow. Over 30,000 families
are now positioned to part with a signi昀椀cant chunk of their inheritance to settle IHT dues.
This increasing number not only underscores the pervasive nature of IHT but also ampli昀椀es
the need for comprehensive 昀椀nancial planning and understanding of the current IHT rules.
