Inheritance Tax Advice
Taxes on death have been resented by UK taxpayers since they were first introduced, in the 18th century.
Labour Peer Lord Glasman memorably joked “it’s good to tax the dead as they don’t vote”. On the other hand an eminent judge said in 1929 “no man…is under the smallest obligation…so to arrange his…business or property as to enable the Inland Revenue to put the largest possible shovel in his stores” and most taxpayers agree with enthusiasm, particularly where taxes on death are concerned.
The fact that Inheritance Tax has been such a battleground between taxpayers and the government mean that the law in this area is complex, and there are many common misconceptions. The tax can apply on some lifetime transfers, as well as on death. It remains possible, however, if you are properly advised and do not leave it too late, to substantially reduce the liability of your estate to this tax without resorting to artificial or complex schemes.
We will advise on Inheritance Tax as part of the normal estate planning process. We can also deal with particular situations, including giving a ”second opinion” on schemes proposed by other professionals, negotiating with HM Revenue & Customs on your behalf, and looking for opportunities to mitigate Inheritance Tax in hindsight, after a death has occurred.
How the Treasury’s Yield From IHT has Increased
The reduced yield in 2019-20 is due to the introduction of the “Residence Nil Rate Band”. This is likely to only be a temporary reprieve for taxpayers.