Between April and December 2022 HMRC received an additional £700m of inheritance tax (IHT) marking a 14% increase compared to the previous year. With the IHT nil-rate band (NRB) being frozen at £325 000 until at least 2027-28 research has suggested that the average IHT bill may be nearly £350 000 before the NRB increases. The result of this is that IHT is now more relevant to clients than ever before and discussions regarding IHT how it is triggered and how it should be paid need to form part of estate planning advice.
When is inheritance tax triggered?
While IHT is probably most commonly associated with the death of a person there are many ways to trigger an IHT liability during a lifetime. Settling property on most forms of trust can give rise to both an immediate IHT liability and ongoing liabilities during the lifetime of...
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