With headlines such as these, it is a stark reminder that you should review your Will and the Inheritance Tax planning measures that you have put in place.
Although an increase in payments of Inheritance Tax will in part be attributable to the fact the nil rate band allowance has been a non mover in the charts since 6th April 2009, poor estate planning will also play its part in the increase in revenue.
The introduction of the residence nil rate band in 2017 should have, in the specific circumstances in which it can be claimed, sort to reduce the tax chargeable on estates. However the complex rules which govern the ability to claim this relief are often misunderstood, and would not have been considered in Wills prepared prior to the introduction of the additional relief, thus meaning that estates which should qualify to the additional allowance could potentially lose out. Until such time as the Office of Tax Simplification tackle this thorny issue, we would continue to remind individuals to review what arrangements they have in place to ensure that they are making the most use of all available allowances.
Link to related article: www.financialplanningtoday.co.uk/news/item/10743-britons-hit-with-record-5-4-billion-iht-bill