Rising house and share prices could push up receipts from UK inheritance tax by £1.5bn over the next five years.
Included in the Office of Budget Responsibility’s (OBR) Economic and Fiscal Outlook report, which was published alongside the Spring Budget 2017, was the Public Finances Databank which can be found here.
The OBR reported that: “IHT receipts were unusually high in 2015-16, reflecting more deaths in 2014-15 (most IHT receipts are received with a 6 to 12-month lag) and several payments from very high-value estates.
The OBR also factored in the UK government’s plans to change the fees payable for an application for a grant of probate which we covered here. The new rates come into effect in May and range between £300 and £20,000, depending on the value of your estate.
This predicted rise in Inheritance Tax creates an opportunity for independent financial planners such as ourselves to create strategies for clients to ensure all the reliefs are secured including gifting, trusts and tax wrappers.