The proportion of deaths in the UK resulting in an inheritance tax (IHT) charge has seen a 0.2% decrease, new HMRC figures have revealed.
Figures showed that the 2018/19 tax year saw 3.7% of all death result in an IHT charge, which was down on the figure for 2017/18. According to HMRC, this was likely due to the phased introduction of the Residence Nil-Rate Band (RNRB) tax-free threshold from April 2017.
The government’s latest figures also showed the total number of UK deaths that resulted in an IHT charge has also fallen. In 2018/19, there were 22,100 such deaths, a fall of 2,100 (9%) since the 2017/18 tax year. This was also likely a result of the continued phased introduced of the RNRB.
HMRC recently confirmed that IHT receipts it received during the 2020/21 tax year reached £5.4bn, a 4% rise equal to £190m compared to 2019/20.
This reversed the fall seen the year prior and meant receipts have been broadly flat across the four years since the tax year 2017/18. Receipts remain below the peak seen in the 2018/19 tax year by around £33m.
Responding to the figures, Killik & Co head of wealth planning, Svenja Keller, said: “Estate planning is a big topic but it shouldn’t be avoided. Whilst it can be difficult to make large gifts or use other planning solutions when the family is still young, it is wise to go through the process of thinking about it early.
“Even if the result of the conversation is concluding you will only do small things now but plan to do more in the future, at least the family knows where they stand.”
Keller added: “There are many complex estate planning solutions out there. They can work but they come with cost and complexity. Whilst an inheritance tax saving of 40% can be significant, it needs to be set against the costs that are incurred for the advice and to keep the structure going for the long-term.
“In addition, estate planning is long-term and a lot of these structures can be inflexible, which means once you are in them it is difficult to unravel them if circumstances or legislation change.”
Latest News
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories