The latest data released by Her Majesty’s Revenue and Customs (HMRC) regarding the amount of inheritance tax (IHT) paid by UK residents for the tax year 2018 to 2019 indicates those based in London had the highest bills.
The official government statistics revealed that people who live in the UK’s capital made an average payment of £271,820 upon their death in IHT for the same year. Meanwhile, the North West’s figures showed it had the lowest average bills for IHT, with residents of this part of the country required to pay, on average, £152,898.
The average IHT bill for UK residents overall was still significantly lower than the average paid by Londoners in the year 2018 to 2019, with average IHT payments of £209,502.
While IHT is a worry for many, it is in fact paid by relatively few people. However, with the average IHT bills reaching over £200,000, it can result in a substantial hit on a family’s wealth.
UK savers with concerns regarding inheritance tax can look to retirement planning specialists in Chester, London and other major cities for advice. Wealth managers can offer a range of dedicated strategies that allow retirees to mitigate the amount of tax their beneficiaries will need to pay.
While 3.7 percent of deaths in the tax year 2018 to 2019 resulted in an IHT bill, this percentage is likely to increase after the recent decision for tax-free allowances to be frozen for five consecutive years.
