The Main Points So far…
For many people, the most valuable asset in their estate on death is their residential property. The value of the property, particularly in cities like Edinburgh, can mean that otherwise small estates become subject to Inheritance Tax. It is important to report an accurate value of the property to HMRC for Inheritance Tax purposes, with fluctuations in the market making this quite challenging for non-professionals.
With Brexit looming in less than a year, the temptation for some may be to fly off into the sunset, leaving behind all ties with the United Kingdom, however be warned, not all ties can easily be cut!
Recent reports have highlighted that inheritance tax receipts continue to grow despite the introduction of the new residence nil rate band. Inheritance tax receipts reached an astounding high of £5.2 billion in the last tax year. This is an 8 per cent increase compared to the £4.8 billion total that was reported in the previous tax year of 2016-17.
Earlier this year, the Office of Tax Simplification (OTS) was charged by the Chancellor of the Exchequer to carry out a review of several different aspects of Inheritance Tax (IHT).