Plan ahead to ease burden of death tax Budget 2016 – WBNews

The inheritance tax is set to swallow more of the nation’s wealth Many face bills of tens or even hundreds of thousands of pounds with the hated “death tax” charged at a swingeing 40 per cent. The number of estates paying inheritance tax (IHT) leapt by 15 per cent in the last year alone and has almost doubled in the last eight years. Around 30,000 families face an IHT bill in the 2016/17 tax year, up from 26,000 one year earlier. In 2008/09 the figure stood at just 16,000, according to private client law firm Wilsons, which has crunched HM Revenue & Customs (HMRC) data. The IHT threshold, or nilrate band, has been frozen at £325,000 since 2009 and will be held there until at least 2019. The number of estates paying inheritance tax (IHT) went up 15 per cent in the last year aloneTim Fullerlove, partner at Wilsons, said the Government will be reluctant to ease the tax burden as IHT now makes up a growing proportion of revenue. This means even more families will get stung by IHT in the years to come. “House prices and inflation have risen sharply since 2009, catching out those who would never have to pay this tax in the past,” said Fullerlove. Many ordinary families are completely unprepared, especially in London and the South-east, where house prices are highest. “IHT will continue to swallow up more and more of Middle England’s wealth,” he added. Currently, IHT is charged at 40 per cent…more detail