A recent YouGov poll of 1,700 adults across the UK has revealed strong support for raising the inheritance tax nil-rate band threshold from £325,000. The survey, commissioned by Kingsley Napley, also found very limited support for increasing the current 40% headline rate of IHT. Perhaps unsurprisingly, raising the threshold and potentially abolishing IHT completely were most popular among higher age groups although, even among 18 to 24 year olds, almost half of those questioned supported increasing the threshold.
James Ward, partner and head of private client at Kingsley Napley, said: ‘IHT is regarded by some as a double taxation given people already pay income tax during their lifetime and is often described as one of the most hated taxes. Our survey results show attitudes on this are clearly not swayed by the current economic situation – a majority would oppose increasing inheritance tax rates and, further, even support the idea of raising the threshold at which IHT kicks in. If the government is tempted to tamper with IHT rules as part of the effort to plug the public finance gap, it may need to think again.’
Ward also points out that the growth in house prices in recent years, together with the freeze in the IHT nil-rate band, has resulted in more estates becoming subject to IHT (although the introduction of the residence nil-rate band has provided some relief).
Alongside the usual planning options (gifts of capital, gifts out of regular income, using exemptions, etc), Ward highlights the ‘skiing’ option: spending the kids’ inheritance.
A recent YouGov poll of 1,700 adults across the UK has revealed strong support for raising the inheritance tax nil-rate band threshold from £325,000. The survey, commissioned by Kingsley Napley, also found very limited support for increasing the current 40% headline rate of IHT. Perhaps unsurprisingly, raising the threshold and potentially abolishing IHT completely were most popular among higher age groups although, even among 18 to 24 year olds, almost half of those questioned supported increasing the threshold.
James Ward, partner and head of private client at Kingsley Napley, said: ‘IHT is regarded by some as a double taxation given people already pay income tax during their lifetime and is often described as one of the most hated taxes. Our survey results show attitudes on this are clearly not swayed by the current economic situation – a majority would oppose increasing inheritance tax rates and, further, even support the idea of raising the threshold at which IHT kicks in. If the government is tempted to tamper with IHT rules as part of the effort to plug the public finance gap, it may need to think again.’
Ward also points out that the growth in house prices in recent years, together with the freeze in the IHT nil-rate band, has resulted in more estates becoming subject to IHT (although the introduction of the residence nil-rate band has provided some relief).
Alongside the usual planning options (gifts of capital, gifts out of regular income, using exemptions, etc), Ward highlights the ‘skiing’ option: spending the kids’ inheritance.
