The latest data released by HMRC shows that a very small percentage of people paid inheritance tax in 2023/24.
This data comes from the ‘Inheritance Tax liabilities statistics: commentary’ report. It shows that inheritance tax was paid on 4.72% of UK estates during that tax year – which adds up to less than one out of every twenty. This percentage does represent an increase on the figure for the previous year, but only by 0.1%. However, it is still the highest percentage of estates to be subject to the tax since 2006/07.
HMRC is attributing the small percentage to the number of tax-free allowances, reliefs and exemptions that are available. It also attests to the value of having an estate administered by Probate solicitors in North Wales. Professionals of this kind will know what the legal options are for minimising or avoiding inheritance tax.
The various carve-outs ensured that the average rate of the tax paid on estates was just 13%. This is far less than the 40% headline rate. Spouse to civil partner transfers were the exemption that was most effective, saving estates £6.8 billion.
James Ward works for Kingsley Napley as its private client practice head. Speaking to Today’s Wills and Probate, he said:
“The decision to make pensions subject to IHT from 2027 may well be a significant contributor to the tax take in future, given it is expected this change will add approximately 10,500 more estates to HMRC’s sights.”
If you want solicitors in Anglesey to help you prepare for this change, call Bennett Smith Solicitors now.
