Could we see the back of inheritance tax? - Pembroke Financial IFA's

Could We See the Back of Inheritance Tax?

Widely regarded as the most unpopular tax, IHT is under scrutiny from both government and opposition. Is it time it was scrapped for a gifts tax? A paper presented to the Labour Party has suggested the abolition of inheritance tax (IHT). Labour Party proposals to kill off inheritance tax (IHT) and replace it with a gifts tax were reported across several newspapers last month. The coverage was somewhat creative given that the idea was plucked from a paper prepared for the Labour Party primarily focused on reforming the taxation of land. The gifts tax section covered just half a page and did little more than regurgitate a structure proposed over a year ago by the Institute for Public Policy Research (IPPR).

HMRC spotlights IHT returns as a new case shows risks of late planning

HMRC spotlights IHT returns as a new case shows risks of late planning

Imagine you are named as the executor and a beneficiary of your wife’s wealthy aunt. You learn that she is suffering from terminal cancer and has ‘a very impaired lifespan’. What do you do? This is what happened in the case of Nader and others v Revenue & Customs. The executor/beneficiary, a Dr Nader, decided to consult a leading firm of accountants about inheritance tax (IHT) mitigation options for Miss Dickins (the aunt). The accountants put forward an offshore trust-based scheme….

Record inheritance tax revenues ahead of simplification review

Record inheritance tax revenues ahead of simplification review

As inheritance tax (IHT) receipts hit a record for the Treasury, is it time to review your estate planning ahead of any changes in the Budget? 2017/18 produced record IHT receipts according to HMRC data published in July. The latest release of the annual statistics revealed IHT produced £5.228 billion for the Exchequer in 2017/18. That’s an increase of two thirds over just five years and, as the graph below shows, IHT revenue has been rising rapidly since Treasury receipts hit a low in 2009/10, owing to the combined impacts of the financial crisis and the introduction of the transferable nil rate band…

Couples can save an extra £20k in inheritance tax from April

Couples can save an extra £20k in inheritance tax from April

Couples could now save an extra £20,000 of inheritance tax (IHT), as the residence nil rate band (RNRB) increased in April 2018. The RNRB was increased at the beginning of this new tax year and it will increase by £25,000 in each of the next two tax years, finally reaching £175,000 in 2020/21. After that, it will be indexed to the Consumer Price Index…