Taxpayers in the UK are set to pay a total of £10 billion a year in inheritance tax by 2030, according to projections from Canada Life.

The most recent data from the Office for National Statistics shows that the Government collected £5.2bn in inheritance tax receipts in 2017/18.

This was an increase of around £1.38bn compared to the same time ten years earlier.

Canada Life's analysis, based on current revenue trends, predicts a much faster pace of change in the next decade.

It says this is a result of the nil-rate band having been frozen at £325,000 since 2009, which may mean more people are liable for inheritance tax as asset values increase.

The research also revealed that 18% of estates worth up to £1 million do not have an estate plan, meaning they may be paying more inheritance tax than necessary.

Neil Jones, market development manager at Canada Life, said:

"There's plenty that can be done within the existing rules to reduce an inheritance tax bill.

"Perhaps because of a very British reluctance to discuss death, many people won't bring up estate planning.

"As a consequence the Government is undoubtedly receiving tax that with proper planning wouldn't need to be paid."

Contact us to discuss estate planning.

Plus Accounting light logo

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!