Posted by Tony Millson, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
Numbers paying IHT set to hit 35-year high
The number of families paying Inheritance Tax (IHT) continues to soar, new figures suggest.
According to the latest analysis, almost three times as many estates are likely to be liable to pay the tax compared to six years ago.
The estimates from the Office for Budget Responsibility (OBR) indicate that a total of 40,100 bereaved families will pay IHT in the current tax year.
If their predictions prove accurate it will mean that death duties have hit a 35-year high, affecting a greater number of people than at any time since the start of the 1980s.
The introduction of an additional allowance for family homes, set to take effect from April next year, is expected to significantly bring down the number of people whose estates are subject to IHT – although debate continues about what the exact impact will be.
The OBR calculates that the number of families eligible to pay could fall by as much as a third in 2017-18.
Despite the projected fall in the number of those affected, the fiscal watchdog believes that the Treasury’s tax receipts will not actually suffer a great deal, with revenue growth still expected from a smaller tax base.
- For advice on Inheritance Tax planning, please contact Tony Millson and Deanna Hurst in Royds’ Private Client team.