NFU Mutual chartered financial planner Sean McCann has urged families to take the Chancellor’s advice and “plan for all eventualities”.
Philip Hammond’s Budget report revealed that, this tax year alone, inheritance tax (IHT) receipts are set to hit a record £5.5bn, slightly above the Office for Budget Responsibility’s estimation of £5.4bn.
McCann said: “While the Budget may have been billed as one for hard-working families, they had better take the Chancellor’s advice and ‘plan for all eventualities’.”
“Inheritance Tax is feared by many and understood by few, so we can only hope that the Office of Tax Simplification’s (OTS) imminent report will throw a lifeline to the growing number of families paying inheritance tax.”
According to the latest forecasts, IHT receipts are set to hit a record £6.9bn by 2023/24, representing an increase of almost 33% since 2017/18.
McCann concluded: “The budget was a missed opportunity to reform this deeply unpopular and hugely complicated tax. Today’s forecast shows that people will be passing on more and more to the taxman each year.”
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