As reported in Professional Adviser, the latest Office for Budget Responsibility figures are reporting that inheritance tax (IHT) paid to the government will break the £5bn mark in 2017, potentially reaching £6.2bn by 2022.
So these reports beg the question, what role can business relief play in estate planning?
Tax Partner at Sedulo, David Evans, says…
“Planning for inheritance tax is becoming increasingly important; what was once seen as a tax paid by the very wealthy is now becoming more widespread. HMRC have collected more and more inheritance tax in the years since the recession which is partly due to increased house prices and partly due to the thresholds & exemptions remaining the same. In our experience clients often avoid thinking about inheritance tax as it’s a bit of a morbid subject, however we always recommend periodic reviews as it can often be mitigated with some simple planning.”