Wednesday, 15 May 2019 09:18

Average Inheritance Tax bill for 2018/19 close to £200,000

Rate this item
(0 votes)
Chartered Financial Planner Sean McCann Chartered Financial Planner Sean McCann

The average inheritance tax bill reached almost £200,000 in the last tax year - up £60,000 in five years, according to analysis of HMRC receipts by financial advice firm and insurer NFU Mutual.

The figure was slightly lower than the year before but both this year and last year's averages were nearly 25% up on 5 years ago.

HMRC statistics also revealed that around 5,000 individuals paid IHT last year while they were still alive.

This was due “in many cases” to gifts into certain types of trust, which can trigger an IHT bill, said the company.

NFU Mutual says that around 27,000 families were hit with IHT bills in 2018-19, helping to bring in a record £5.4bn in tax revenue for the Treasury.

The average bill was £141,000 five years ago but increased sharply in 2017-18.

 

Tax year

Total IHT receipts

Number of taxpayers

Average IHT bill

 

2018-19

£5,369m

27,000

£198,852

2017-18

£5,205m

26,000

£200,192

2016-17

£4,824m

30,000

£160,800

2015-16

£4,650m

29,000

£160,345

2014-15

£3,804m

27,000

£140,889

Source: HMRC / NFU Mutual

Despite the introduction of the Residence Nil Rate Band, a  tax break on family homes, in April 2017, IHT receipts have surged, says NFU.

Sean McCann, Chartered Financial Planner at NFU Mutual, said: “This is a deeply unpopular and fiendishly complicated tax. Successive governments have heaped on further layers of complexity that have made passing family wealth through generations more difficult.

“The Office of Tax Simplification’s review of IHT cannot conclude soon enough. Thousands of families could be missing out because of the unnecessarily complex IHT rules.”

FREE. Get more stories like this daily to your inbox. Unsubscribe at any time. Sign up now.

 

Last modified on Wednesday, 15 May 2019 15:55
FINANCIAL PLANNING JOBS - Advertise your vacancy from £99 ex VAT
Reach 12,000+ professionals by advertising your vacancy with us. Set up an account and post your job the same day. Big savings for advertising 2 or more vacancies.
Special Offer: Use code 'FPJSaver10' on checkout to save on selected packages. Click for details:
jobs.financialplanningtoday.co.uk/