Once the preserve of only the UK's wealthiest families,
inheritance tax (IHT) is now affecting an ever-expanding number of
taxpayers – and a record portion of their estates is expected
to be paid over to HM Revenue & Customs this year.
Escalating house prices and inflation, together with the fact
that the IHT 'nil-rate band' threshold has not been
increased from £325,000 since 2009 (and is set to continue
until at least 2028), has brought more and more taxpayers into
scope.
IHT is a tax on the worldwide estate – property, money and
possessions – of anyone who dies domiciled in the UK. At 40%
of any value of an estate over £325,000, IHT represents a
substantial potential liability. Projections indicate that the UK
Treasury is set to rake in £7.6 billion from IHT in fiscal
year 2023-24, a rise of £500 million from the previous
year.
