On October 27, Chancellor of the Exchequer Rishi Sunak will deliver the next Budget. Experts anticipate the Treasury will target certain taxes to recoup outlay during the COVID-19 pandemic, and they suggest that Inheritance Tax (IHT) will be an obvious addition to the list.
IHT bills due to be paid when a person passes away can currently be offset and efficiently reduced via the use of certain types of relief. These include investing in particular businesses or giving gifts to dedicated charities. Now, financial experts are predicting that as the new Budget in autumn approaches, the Treasury will rein in many of these reliefs to help the UK government cover its COVID-19 costs.
UK savers with concerns about IHT seeking retirement planning specialists in Shropshire, Somerset and other counties can count on wealth managers for guidance. Unlike general financial advisors, wealth managers take a holistic approach when examining clients’ long and short-term financials. Along with investment and portfolio advice, they can offer help with retirement and estate planning, mitigating tax bills with cost-efficient strategies.
Back in 2019, the UK’s Office for Tax Simplification (OTS) issued a report regarding IHT. It recommended changes to simplify current rules related to gifts being made in an individual’s lifetime. Presently, certain gifts, like money and personal items, may be passed to family members, impacting how much IHT must be paid later. Many other gifts are entirely exempt.
Experts now predict the Autumn Budget may put reliefs under a single exemption annually, which may not be as generous overall, for those looking to reduce IHT bills.