Posted by James McNeile, 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.
South East bears the brunt of Inheritance Tax
Estates in London and the South East paid almost half the UK’s Inheritance Tax (IHT) over a 12 month period, new statistics have revealed.
The disproportionate amount being generated in the region was driven by the fact that property prices in and around the capital remain well above the national average – increasing the likelihood of families exceeding the threshold at which IHT starts to apply.
In total, 49 per cent of the £3.4billion collected in 2013-14 came from this area.
The concentration of IHT receipts in one corner of the UK was one of a number of trends identified following the publication of the latest official figures.
The statistics also showed:
- The amount of revenue that the Treasury collects from IHT has almost doubled since 2009.
- 417 estates nationwide owed more than £1million in tax.
- Women’s estates tend to pay far more IHT than men’s, largely as a result of longer life expectancies.
If official forecasts prove accurate, the proportion of the total population expected to be liable to pay IHT is due to hit 8.3 per cent this year. This would be the highest share since 1976.
That said, the more generous allowances (which will take effect next April) are expected to bring the share of estates affected back down to around 5.3 per cent in 2017-18.
For legal advice on Inheritance Tax planning contact Tony Millson and Deanna Hurst in Royds’ Private Client team.