Arif Patel Preston UK: There are six legal ways to avoid inheritance tax.
Although only the very wealthy were required to pay inheritance tax in the past, today it is widely regarded as the most resented tax in Britain.
As property values have skyrocketed, many estates have exceeded the threshold, and as a result, it is anticipated that an increasing number of families will fall into the inheritance tax trap.
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IHT receipts had reached an all-time high of £7.1 billion, according to data released by HM Revenue and Customs last month. This is an increase of £1 billion from the previous high of £6.1 billion in 2021-2022. For homes that in all actuality do get found out, the taxation rate can be immense.
How much can I inherit before I have to pay tax?
The estate value above the tax-free threshold of £325,000 is subject to a 40% estate tax upon death, reducing your loved ones’ inheritance.
As a country we are paying more passing obligations than any other time in recent memory. In 2021 and 2022, HMRC made a record-breaking £6.1 billion, up 14% from the previous year.
Rising property costs and a 20-year freeze on the legacy charge edge are maneuvering more families into the net and making bills enlarge in size. It is anticipated that the decision made by the government in the Autumn Statement to maintain the current tax thresholds until 2027-2028 will result in an additional £1 billion in savings for families compared to bands that would have been raised to reflect inflation.
Quilter’s wealth management specialist Arif Umarji Patel stated: Although the inheritance tax has traditionally been viewed as a tax on the very wealthy, there has been an increase in the number of people caught in the net in recent years.