Inheritance Tax payments rise
HMRC has certainly cashed in on Inheritance Tax payments over the last twelve months, receiving an additional £190 million from 20,000 individuals – a rise of 3000 people on the year before.
Paying 40% on the value of any inherited assets above the nil rate band of £325,000 for a single person (or £650,000 for a married couple), executors are often forced to pay the subsequent Inheritance Tax bill before any remaining assets can be distributed. This nil rate band is fixed until 2014/2015, at which time it will be raised to £329,000.
Critics have claimed that this rise in Inheritance Tax income has been a deliberate ploy by the government, to trap as many families as possible into giving away almost half of their wealth through a lack of, or ineffective estate planning. However, HMRC has responded by saying that there has in fact, been a relative decline in the number of individuals paying Inheritance Tax since 2006/2007, during which time, 34,000 tax payers became eligible to pay IHT.