Although inheritance tax was once primarily the concern of wealthier individuals and families, as property prices rise increasing numbers of people are finding themselves faced with significant costs.
As this GOV.UK article explains, inheritance tax becomes payable at a rate of 40% on estates worth more than £325,000. Interestingly, however, statistics released by the government for the tax year 2013/14 reveal that inheritance tax does not affect individuals in wholly expected ways.
1. Inheritance Tax Receipts Have Increased by Almost 50%
In the 2013/14 tax year, the government collected £4.6bn in inheritance tax. This is a significant rise from the £2.4bn that was taken in 2009/10, and many experts have attributed this increase to a rise in property prices.
There are some tax exemptions available, so if you are looking to obtain advice from an independent financial advisor Swindon based professionals will explain all the tax relief schemes you are eligible for, which could reduce the amount of tax you will be required to pay.
2. Women Pay More Inheritance Tax Than Men
As women typically outlive men, they generally pay more inheritance tax because the surviving spouse can receive the total sum of a deceased spouse’s assets completely tax-free.
3. More Than 400 Estates Received a Bill Totalling More Than £1m
Most estates had zero inheritance tax liability, and many benefited directly from a range of relief opportunities, such as the new family home allowance. On the other end of the spectrum, however, several hundred estates consisting of cash, property and/or shares owed more than £1m.
If you want to find out more about the relief opportunities that you and your family could benefit from, independent advice is available. If you are looking to enlist the services of an independent financial advisor Swindon based teams are renowned for their knowledge and professionalism.
4. Although the Value of Property Was Greater, More Estates Also Contained Cash
A significant percentage of estates liable for inheritance tax contained some cash, but residential property typically had more than twice the value of all taxable currency.
5. The South East and London Pay as Much Inheritance Tax as the Rest of the UK
As much of the country’s business and property wealth is situated in London and the South East, these two areas paid £1.6bn in inheritance tax, while the rest of the country paid £1.7bn.