Ireland 
USA IHT receipts rise by £1bn year-on-year
New data published today by HMRC shows that IHT receipts for April 2022 to March 2023 were £7.1 billion, which is £1 billion higher than the same period a year earlier. Laura Hayward, tax partner at Evelyn Partners, the leading integrated wealth management and professional services group, comments:
IHT receipts rise by £1bn year-on-year
New data published today by HMRC shows that IHT receipts for April 2022 to March 2023 were £7.1 billion, which is £1 billion higher than the same period a year earlier. Laura Hayward, tax partner at Evelyn Partners comments:
“The latest year-on-year rise in IHT receipts provides a reminder of how this lucrative form of revenue has become well-established as a gift that keeps on giving for the Treasury. Although there has been speculation that IHT could be cut by the government as a General Election manifesto pledge, the outlook for this tax is far from certain. In the short-term, families would be prudent to give careful thought to their tax planning to ensure they don’t pay more tax than they need to.
“More families are expected to be caught by the IHT net given the inflationary growth of asset values coupled with the fact that the nil rate band remains frozen at £325,000 until at least April 2028. Indeed, forecasts published by the Office of Budget Responsibility on the same day as the Chancellor’s last Budget now predict that between 2022/23 and 2027/28 the Treasury will collect £45bn in IHT receipts, a rise from the £42.1bn estimate released last November.
“I’m currently seeing a lot of interest from clients wanting to pass wealth to the next generation in a bid to mitigate the impact of IHT. One option is gifting. Gifts you make to other individuals are generally not subject to IHT unless you die within seven years. There is also an annual gift allowance of up to £3,000 per tax year, and this will not be subject to IHT even if you do die within seven years.
“However, many people I speak with also have concerns around control and protection when passing on wealth to the next generation, so I am increasingly seeing them consider tools such as Family Investment Companies, Offshore Bonds and Trusts, where this fits with the wider plans and motivations of the family. Inheritance Tax needs to be carefully thought through and planned, especially where assets such as company shares, property and pensions are involved.”
About Evelyn Partners
Evelyn Partners is the UK’s leading integrated wealth management and professional services group, created following the merger of Tilney and Smith & Williamson in 2020. With £59.1 billion of assets under management (as at 31 December 2023), we are one of the largest UK wealth managers ranked by client assets and the seventh largest accountancy firm by ranked by Group fee income (source: Accountancy Age 50+50 rankings, 2023).
We have a network of offices in 30 towns and cities across the UK, the Republic of Ireland and the Channel Islands. Through our operating companies, we offer an extensive range of financial and professional services to individuals, family trusts, professional intermediaries, charities, and businesses.
Our purpose is to ‘place the power of good advice into more hands’, and we are uniquely well-placed to support clients with both their personal financial affairs and their business interests. Our personal wealth management services include financial planning, investment management, personal tax advice and, through Bestinvest, we have a multi award-winning online investment service for self-directed investors. For businesses, our wide range of services includes assurance and accounting, business tax advice, employee benefits, forensics
For further information please visit: www.evelyn.com
Disclaimer
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.
Issued by the Evelyn Partners group of companies (the “Group”) which comprises Evelyn Partners Limited and any subsidiary of Evelyn Partners Limited from time to time. Further details about the Group are available at: https://www.evelyn.com/legal-compliance-regulatory/registered-details