NFU Mutual have announced that they expect the number of UK millionaires to rise to almost 500,000 this year, with a further 85,000 (585,000 total) by 2020.
With the Inheritance Tax Threshold frozen at £325,000, this is going to lead to an increasing number of families having to pay inheritance tax on death.
Whilst an increase in family wealth is a good thing for the UK, it will obviously mean that more money is spent on inheritance tax than ever before. One way of reducing liability it to use the new IHT tax-free allowance for family homes, which is being introduced from April 2017. This will rise from £100,000 to £175,000 in 2020. By then, it will be possible for a married couple to leave up to £1 million free of IHT.
We would always recommend that families seek advice if they are concerned about the tax their estate may pay and that they make use of all of the devices available to them to reduce the overall tax liability. Our private client solicitors, Sarah Ryan & Deborah Neiteler, are both affiliate members of the Society of Trusts & Estates Practitioners and are experienced in offering advice on tax planning.
If you are concerned about your own estate, contact Sarah or Deborah today on 01525 372140 for a free consultation to discuss your needs. You can also read our free guide on inheritance tax planning here: Inheritance Tax Planning – A Guide.
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