Over the last 5 years the amount collected in inheritance tax per year has increased by £1bn. In 2014 the total take by the Treasury was £3.4bn.
This government pledged to increase the threshold from which the tax is charged to £1m per person but has not done so. It has fixed the allowance at £325k until April 2018. With house prices rising in certain areas of the country many more thousands of families have been dragged into the tax trap and forced to pay 40% of estates valued over £325k.
More planning is vital for home owning families . A Revocable Life Interest Trust Will can be used to defer payment and possibly escape the tax altogether. Equalisation of estate values between partners helps reduce the burden . Lifetime Property Protection Trusts can also help.
Planning for death is an important part of financial planning for any prudent individual