Inheritance Tax Receipts Are Adding Up
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Inheritance Tax Receipts Are Adding Up
We are increasing support for advisers and their clients with the launch of an Inheritance Tax (IHT) calculator.
The latest HMRC data shows that that total IHT receipts for April 2023 to March 2024 hit a record £7.5 billion – £400 million higher than the same period last year and Government forecasts estimate IHT receipts will grow to £8.4 billion by the 27/28 tax year.
Our IHT calculator is designed to estimate current and future client liabilities including gifting plans and increased asset values.
Advisers can select a range of options including current IHT liabilities for clients, future liabilities based on increased asset values, as well as options including gifts already given and future gifting plans.
There’s information on IHT asset reliefs such as Business Relief and Agricultural Relief as well as exempt gifts including annual exemptions, small gifts exemptions, normal expenditure out of income and marriage gifts exemptions, as well as the benefit of charitable gifting in the Will.
We have launched the calculator as advisers tell us they are seeing increasing demand for support with tax planning from clients and that increase will no doubt continue given the freeze in IHT nil rate bands and the growing number of clients becoming higher rate and additional rate taxpayers.
At HSBC Life (UK) we aim to deliver good outcomes for clients by supporting advisers. Our new IHT calculator does that by helping provide guidance for advisers and their clients on tax planning and potential future liabilities.