Demand for advice on IHT plans has skyrocketed over the past year
The government purchased it for £2 billion in succession tax (IHT) between April and July.
This is an increase of £5 billion compared to the same period in 2020.
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HM Revenue & Customs confirmed that it received it in the £575 million region in July 2021. This is the highest amount I’ve received in a month in recent years.
The government ministry suggested that this figure could be higher as more wealth transfers were occurring during the pandemic.
Inheritance tax receipts are expected to continue to rise after the Prime Minister’s decision at the beginning of the year to freeze the NIL rate band until 2026.
Comments on HMRC data showing IHT receipts for April 2021 to July 2021 were £2.1 billion, a £0.5 million higher than the same period last year. Inheritance tax receipts highlight how easy it is for an individual or couple to generate potentially large inheritance tax bills upon death.
“Desired to the Openwork Partnership, one of the UK’s largest network of financial advisors, demand for IHT planning advice has skyrocketed by 38% over the past year, with more than one in 10 clients reporting they want to discuss it. “Many people are not yet looking for a proper financial plan that will allow them to convey more wealth to their families.”
“According to a study conducted in conjunction with the Deepbridge Estate Planning Service, the most commonly used IHT planning tools are most or all clients considering 94% of financial advisors, and then 78% of advisors consider Business reliefs are being considered forward: Trusts (73%) and Life Policy (67%). In this survey, 76% of IFAs believe that the use of business relief propositions will increase over the next two years. , under 2% say that tax cuts are being used less,” Aldridge added.
