HMRC data released today (April 23) shows that Inheritance Tax (IHT) receipts continue to rise, driven in part by a few large payments. This ongoing increase is causing concern, particularly with the government’s potential move to include pensions within IHT’s scope.
Andrew Zanelli, head of technical engagement at Aberdeen Adviser, noted that IHT receipts are likely to keep growing if pensions are brought under its remit. While the exact details of the government’s proposal are still unknown, the prospect is already worrying many. Zanelli advised caution, warning against rushed decisions such as withdrawing large sums from pensions. He emphasized that effective IHT planning is possible with the right strategy and guidance.
“Good planning is essential,” he said, “and reacting impulsively may lead to worse outcomes in the long run.” Seeking expert advice and aligning decisions with broader financial goals is key to managing potential IHT exposure.
Meanwhile, Paul Barham, partner at Forvis Mazars, added that public perceptions of IHT are changing. “It’s no longer just an issue for the wealthy,” he said, suggesting that more people may soon find themselves affected by IHT as thresholds remain static and asset values continue to grow.
