Increasing number of estates are liable for inheritance tax

By Lenore Rice

The continued freeze of the threshold at which inheritance tax becomes payable is expected to result in a record amount of inheritance tax receipts in 2015/16.

The current inheritance tax threshold of £325,000 has gone unchanged for 5 years, meaning increased property prices are pushing more estates over the threshold and liable to pay tax at 40 per cent. Inheritance tax was previously considered a concern for very wealthy people only, but the continued freeze of the threshold means that any estate which involves a property being left as an inheritance could most likely result in inheritance tax being payable.

In 2007/08 the current record of £3.82 billion was collected in inheritance tax. The Office of Budget Responsibility is predicting that £4.2 billion will be raised in this new tax year, and could go up to £5.8 billion by 2018/19.

If you require legal advice in respect of making a Will, a lifetime gift, creating a trust, or in respect of inheritance tax, contact one of the estate planning solicitors at Wilson Nesbitt in Northern Ireland by calling 0800 840 9293.