Inheritance Tax on the elderly

Data shows that Inheritance Tax payments to HMRC are due to rise sharply as it has revealed that the number of older people set to leave over £150,000 after death has doubled over the past 10 years.

Table of contents

Inheritance Tax on the elderly

Data shows that Inheritance Tax payments to HMRC are due to rise sharply as it has revealed that the number of older people set to leave over £150,000 after death has doubled over the past 10 years. Research shows that the number of wealthy people over the age of 80 has increased by 45% over the last 10 years. In addition, the number of people set to leave £150,000 to family has risen to 44% from 24% and the rise is dragging more families into inheritance tax.

Inheritance tax on the elderly

The rise in wealth and inheritance

The rise in wealth and inheritance seems to be the result of home ownership and rising house prises. For the first time ever Inheritance Tax for ‘death duties’ totalled up to over £4 billion in 2016, which is causing a strain on middle class families. This April, an addition of a ‘Residential Nil Rate Band’ is going to be put in place to reduce the amount of middle class families having to pay inheritance tax bills although the total amount collected is set to continually rise over the next few years.

Inheritance Tax on the elderly gets introduced on assets over £325,000 but from this year the threshold will begin to rise up to an extra £175,000 in residential property wealth over the next 3 years.

Being pushed over the Inheritance Tax threshold

It is believed that more people are leaving large inheritances and are being pushed over the Inheritance Tax threshold but actual number of middle class families having to pay the inheritance tax is set to be reduced by the higher threshold. If the government isn’t happy with the effect over time then a peg would have to be put in place to increase its value relative to house prices rather than a consumer prices We believe that unless the peg is put on the rising house prices rather than consumer price, then there will still be an increase in the number of middle class families paying inheritance tax. It would be fairer to peg the increases to house prices instead of CPI, as CPI is rising a lot slower, especially in the south of the country.

Increased number of inheritance

The number of over 80’s who are expecting to leave an inheritance has increased to 72% up from 60% in a decade which means that the number of individuals expecting to receive inheritance has increased across generations. The number of people born between 1930 and 1970 who are being left an inheritance has also doubled compared to 10 years ago.


In conclusion, the amount of younger people who are set to be left inheritance is all dependent upon who their parents are compared to previous generations. The elderly today have a lot more money to leave their family now due to homeownership and the increase in house prises. At the same time, it will be difficult for young adults to get wealthy with no aid due to the fall in homeownership for that age category as well as the decline in defined pensions within the private sector and the lack of growth in their incomes. As a result of both of these issues older people and their children should seek expert advice from an experienced financial planner in order to avoid Inheritance Tax.

Join our Newsletter

Subscribe and get the latest updates about inheritance tax and Estate Planning into your mailbox.

We help people with over £1 million in current assets pay ZERO in UK inheritance tax

One stop comprehensive specialist advice - Tax, financial planning and legal advice service with 18 years experience.

What our clients say
Read our 118
    

"It is gratifying to finally come across an adviser who gives sensible ongoing advice which is very client focused."

Frank Hibberd

Retired gentleman

"It is nice to know that we can now be certain that our daughter will inherit our money without giving a large slice of it to the government ."

Tony & Sue Perriss

"Everyone's situation is different but having an initial discussion with Charles has really helped me personally navigate what can be a daunting subject."

Bobby Chadda

"I particularly want to thank you for the open and transparent manner in which you have serviced my tax planning needs since I first met you seven or so years ago. In arranging my tax planning through you, I have confidence"

Michael Mahon

Retired gentleman

"Charles was really helpful from the outset and quickly clarified our situation for us... I have used Bluebond for  IHT and other tax advice and they have been very helpful with both. Charles is a very experienced and knowledgeable individual and I highly recommend Bluebond's services."

Sam Attenborough

Retired gentleman

I have used Bluebond for setting up a discretionary trust for my children as well as inheritance tax and estate planning for my home and  other properties. Having searched for years, it was only after meeting and speaking with Charles that I felt confident enough to take these next steps, and I'm very glad I did. His ability to explain complex issues in simple terms and walk you through every step of the process is quite simply unparalleled.

Imran Qureshi

Excellent and comprehensive advice concerning all things financial in one place. Enthusiastic, Educational, Expert, value oriented, Professional and Polite are adjectives that come to mind as well as great attention to detail.

Deirdre Buckley

Inheritance tax is a minefield. Charles de Lastic of Bluebond Tax Planning is the best in the business at helping you to chart the path that is right for you to ensure your estate is structured in the most tax efficient manner.

Nicholas Dickinson

Charles provides clients with valuable insights that clearly demonstrate expertise built over the years. Charles and his team guided us through a estate planning journey and then addressing complex Inheritance Tax matters. They have been very transparent with their advice and cost. Overall an excellent service. Highly recommended

Shailesh Karia

The information contained in this web site is for UK consumers only.  Like most firms of solicitors and accountants, Bluebond Tax Planning is not regulated by the FCA. The content of this website does not constitute FCA regulated financial advice and all content is provided for general information purposes only. Bluebond is not responsible for any action you may take as a result of information on this site. All advice will be delivered on a personal basis once we fully understand your situation and our client agreements have been signed.

Copyright © 2024
Copyright Notice
Legal Disclaimer
Terms & Conditions
Privacy Policy