Inheritance Tax Set for Changes in Upcoming Budget
The government is expected to raise more revenue from Inheritance Tax in the upcoming Budget on 30 October 2024, according to BBC reports. Although the exact changes are still unclear, the prime minister and chancellor are reportedly considering various adjustments to the tax system. These changes could lead to more estates facing higher Inheritance Tax liabilities.
Current Inheritance Tax Rules
Inheritance Tax is currently levied at a rate of 40% on the value of estates above the £325,000 threshold. Although it generates approximately £7 billion annually for the government, only around 4% of estates face this tax due to a series of reliefs and exemptions. These include:
- Business Relief for Inheritance Tax: Allows individuals to pass on certain business assets without paying the full Inheritance Tax.
- Agricultural Relief: Applies to farmland and pasture used for growing crops or rearing animals, exempting them from tax.
If someone dies within seven years of giving a gift, the gift may be subject to Inheritance Tax.
Potential Changes to Exemptions and Reliefs
As the government seeks to address a £40 billion shortfall, it appears that current exemptions and reliefs, including Business and Agricultural Relief, could be under review. While no specific changes have been confirmed, many anticipate reforms to these exemptions to raise additional revenue.
The Expertise of Tozers’ Wealth Management Team
Our Wealth Management team is recognised as a leading provider of expert advice on Inheritance Tax planning. The team is ranked by Legal 500 for its experience across the full spectrum of succession planning and tax mitigation matters, assisting a broad range of clients including individuals, business owners, and farmers.
Our team, led by Gráinne Staunton, has been praised for their expertise, with clients noting that we “take the time to get to know and understand you and to ensure that you understand your options” and that we “carefully guide clients through difficult decisions.” Gráinne Staunton, in particular, has been commended for her “exceptional communication skills, integrity, and expertise.”
Our tailored approach means we recognise that every client’s situation is unique. Whether it’s Business Relief, Agricultural Relief, or strategies around lifetime gifting, our specialists provide clear, practical advice that puts your priorities at the forefront.
Preparing for the Future: How Tozers Can Help
With Inheritance Tax changes on the horizon, now is the time to review your estate planning strategy. Our nationally recognised team is here to provide expert guidance on how to protect your assets and reduce potential Inheritance Tax liabilities. Whether you’re a business owner, farmer, or individual, we are dedicated to helping you navigate the complexities of tax planning.
Our services include:
- Inheritance Tax planning for individuals, business owners, and farmers.
- Maximising available Inheritance Tax reliefs and exemptions.
- Lifetime Inheritance Tax planning and gifting strategies.
- Post-death Inheritance Tax arrangements, including deeds of variation.
Recognised for our deep experience and understanding, our Legal 500-ranked team ensures that your estate planning is in safe hands. As one client shared, “Tozers are excellent communicators and understanding of our needs and our wishes.”
With potential legislative changes on the horizon, planning ahead is essential. Contact us today to speak with our Wealth Management team and ensure your family’s future is secure.
Our Wealth Management team will be keeping a close eye on any potential adjustments to the current system, with advice to help you make the most of your available options so you can stay on the front foot.
In the meantime, contact us to discuss your general Inheritance Tax or Capital Gains Tax position and how you can best plan for the future, even when times are more uncertain.
Our inheritance tax and estate planning experts in the Wealth Management team help you plan for the future, with straightforward legal advice to protect yourself and your family.
