£85m increase year on year for IHT means many families could face an unexpected tax bill

Following a record previous tax take for IHT, it has risen again to start the new tax year. Sarah Hollowell, Tax & Trustee Services Director at Killik & Co said:

“Inheritance tax (IHT) planning has never been more important, with the continued freezing of thresholds and surging values of estates meaning many families could face an unexpected tax bill. As the first tax receipts of the new tax year show, IHT has already risen by £85m on April 2023.

“It is therefore crucial that families take the time to look at their financial situation and tax liabilities and plan accordingly. For some, making use of gifting allowances is certainly something to consider and speaking with an adviser who can suggest the most appropriate route to reduce potential IHT liabilities.”