The yield from Inheritance Tax rises again
The yield from Inheritance tax rose to £3.7bn in 2014, which is an increase of 11% year-on-year. The total of inheritance tax receipts for 2013 was £3.3bn. The increase, say campaigners, is evidence that the controversial tax is hitting an increasing number of “ordinary families”.
The government’s failure to keep the inheritance tax threshold inline with rising property prices had resulted in the tax being an increasingly lucrative way of topping up the treasury coffers.
Inheritance tax, referred to by opponents as the ‘death’ tax, has become vital political currency in the run up to the next general election. In an interview with the Times this month, Osborne pledged a next Conservative government would ensure the tax is “only paid by the rich”.
However we have had these promises before at the last general election and the government is under increasing pressure to increase its tax revenue. Any significant changes to a very lucrative tax which increases its return year on year is unlikely.
The best way of avoiding this punitive tax is to take experienced advice and early action. Inheritance tax is generally only paid by people who fail to take action early enough to avoid it.