Business Relief to the rescue as Inheritance Tax receipts hit £5bn
With annual Inheritance Tax (IHT) receipts now at their highest share of national income since the early 1980s, HMRC recently announced that receipts have exceeded £5bn for the first time (£5.1bn in the 12 months up to May 2017).
According to the latest figures provided by HMRC, the amount of money paid in IHT by families in the UK has dramatically increased by close to 70% over the last five years (2012-2017). The Office for Budget Responsibility expects receipts to continue to rise to an eye-watering £6bn by 2020-21! And this predication came after the introduction of the new Main Residence Tax Allowance.
The recent house price boom in the UK has been well documented and seems to be one of the main culprits for this dramatic rise and despite the fact that many analysts have stated it is ‘now over’, the prospect of a housing market crash is deemed ‘remote’. One of the problems seems to stem from the fact that the market has become caught up in its own vicious circle.
So whereas in the past, IHT problems have been thought to be the scourge of the very wealthy, more and more middle class families are now being caught. So what can be done?
BR TO THE RESCUE
We all know there are many options for those seeking to mitigate potential IHT problems. Gifting or Trusts may be the way forward for some and it is very important that each client is assessed and advised according their own individual situation. However, we at Blackfinch believe that Business Relief (BR), formerly BPR, is not only the most flexible but, most importantly, allows the individual to retain control and access over their funds all in a timely manner.
Over the last few years Blackfinch has continued to evolve its range of BR qualifying portfolios to meet the demands of a growing number of clients with an ever growing number of scenarios. We are now able to offer clients IHT portfolios including:
- Capital Preservation
- Income Generating
If you would like to find out further information about the range of the Adapt IHT portfolios, please contact:
01684 571 255
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