Inheritance tax (IHT) is payable on the estate of a person who has passed away, on the amount which falls above a particular threshold. The threshold usually stands at £325,000, but can be increased in a number of ways. What is clear about IHT is the money it brings in for the Government, despite resistance to the tax, and new statistics have shown the pattern over the last tax year.
She said: “We know from speaking to our own clients that as the pandemic hit many thought more about their own mortality, and wanted to ensure they had financial plans for their families in case the worst happened.
“HMRC has noted in its latest announcement that the high figures in March and April 2021 were expected to be, due to higher volumes of wealth transfer that took place during the pandemic.
“But it is waiting for additional data to become available before it can verify this.
“An uplift in transferring wealth to the next generation is certainly a prominent trend we’ve noticed among many clients over the course of the last 12 months.”
There has been widespread speculation, however, that IHT could change in the future.
The tax continues to be not well-liked and many have called for it to be scrapped altogether.
But there have also been suggestions that the levy could be reformed to promote fairness and ensure a less hefty tax bill.
A primary concern is closing what are perceived as tax loopholes, however, some believe more change is necessary.
As of yet, though, no major alterations to the tax have been announced.
In the recent Budget, the Chancellor said IHT thresholds would be frozen at their current levels until 2026.
However, many have simply viewed this as a way for the Treasury to rake in more money post-pandemic, rather than a way to help Britons.
Ms Rosenbloom offered further insight on this issue and the concerns of Britons.
She added: “It is widely believed that changes to the tax system are inevitable given that the Chancellor needs to balance the books and rebuild the economy following the pandemic.
“We saw many clients transfer wealth to the next generation when it was predicted that IHT rules would be reformed in the last Budget.
“Although no changes to IHT were announced, we don’t know what reforms could happen in the future.
“I’d urge individuals to make the most of the current regime and think carefully about their next planning.”
Those who are looking to reduce their tax bill in a legal way are usually prompted to consult a financial adviser.
This is because these individuals can help with some of the complexities and peculiarities of estate planning.