According to recent research, HMRC receipts indicate that this tax year the taxman is on track to gain £5.5 billion from people’s estates.
Despite the introduction of the new Residence Nil Rate Band (RNRB) in April, NFU Mutual has reported that inheritance tax receipts grew by £420 million year on year. Whilst the aim of the RNRB was to alleviate the tax for those passing their main residence to direct descendants, the potential for estates surging above the threshold is increasing, arguably reducing the effectiveness of the allowance altogether.
Drawing on this point was chartered financial planner at NFU Mutual, Sean McCann.
As well as highlighting the value of inheritance tax where the Treasury is concerned, he also commented on the close attention being paid when it comes to valuing estates accurately.
‘Inheritance is a rich vein for the Treasury to tap into, and with receipts growing so quickly there is every chance the chancellor could drain family wealth even further in the Budget.
‘It’s clear that the taxman is cracking down hard on inheritance tax by looking more closely at people’s estates and challenging claims for reliefs.’
