Figures released by HMRC have revealed that the amount of capital gains tax and inheritance tax collected in 2018/19 hit record levels, at £9.2bn and £5.4bn respectively.
A lot of this is being generated by property values, and the CGT take in particular is benefitting from the Government’s crackdown on buy to let landlords who are selling up rather than face the restrictions to income tax relief for mortgage interest and the forthcoming changes in the CGT rules which will make the tax on residential properties payable earlier, and effectively abolish the current generous reliefs for properties that have previously been the landlord’s main residence.
The average amount of IHT payable by an estate has increased to over £200,000 for the first time, and a substantial amount of this could be avoided with some advance planning to use reliefs and allowances that are available for use during lifetime and in Wills.
Author: Peter Hedgethorne, Director, Plus Accounting
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