New data published today by HMRC shows that IHT receipts for April to June 2022 were £1.8 billion - £0.3 billion higher than the same period a year earlier. Julia Rosenbloom, tax partner at Evelyn Partners comments:
“The announcement of another year-on-year rise in IHT receipts will be welcomed by the Treasury with open arms given the pressure it has been under to help support families with the cost of living crisis while at the same time pay for government reforms.
“Promises of tax cuts have been a dominant theme in the Conservative leadership campaign to date, but whatever the new Prime Minster and their Chancellor announce when they take office, any pledges being made won’t translate into tax cuts across the board. Whilst some tax cuts could be on the cards, the new leadership may try to balance the books with tax increases in other areas and IHT could be an easy target. This could see the revisiting of the policy of IHT reform which is currently parked.
“Given uncertainty surrounding the possible changes that the new leadership could make to personal taxation in the coming months, the need for families to give adequate thought to tax planning and take professional advice is extremely important at the moment. By considering tax planning strategies such as making gifts to family members or investing tax-efficiently there are a number of legitimate ways families may be able to reduce or eliminate their IHT bills.”
The value of an investment, and any income from it, may go down as well as up and you may get back less than you originally invested.
Prevailing tax rates and reliefs depend on your individual circumstances and are subject to change.
*Tax Advantaged Investments, such as VCTs, EISs and SEISs, should be regarded as higher risk investments. They are only suitable for UK resident taxpayers who can tolerate higher risk and have a time horizon of greater than five years. They should only be considered once other planning opportunities have been fully explored and they should only ever form a small part of your overall investment portfolio. Owing to the nature of their underlying assets, Tax Advantaged Investments are highly illiquid. Investors should be aware that they may have difficulty, or be unable to realise their shares at levels close to those that reflect the value of the underlying assets. Tax levels and reliefs may change and the availability of tax reliefs will depend on individual circumstances. You should only subscribe for Tax Advantaged Investments on the basis of the relevant offer document and must carefully consider the risk warnings contained in that offer document.
Evelyn Partners is the UK’s leading wealth management and professional services group, created following the merger of Tilney and Smith & Williamson in 2020. With £62.2 billion of assets under management (as at 30 June 2024), 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, fund administration, fund governance, recovery and restructuring and transaction services.
For further information please visit: https://www.evelyn.com/
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