IHT Receipts Soar to £1.9 Billion with Many Missing Out on Vital Tax Breaks
- On August 30, 2018
- By GrowthInvest Admin
Freedom of information request reveals thousands are not taking advantage of residence nil rate band allowance
The government collected an eye-watering £1.9 billion in inheritance tax receipts in the first four months of the tax year, as people fail to take advantage of new tax breaks.
IHT receipts between April and July hit £1.9 billion, with just 5,420 estates claiming the new residence nil rate band. A freedom of information request made by NFU Mutual reveals thousands of estates are missing out on the tax break.
Introduced in April last year, the residence nil rate band (RNRB) provides an additional tax break on the family home; the value of the tax break will rise further over the next two years.
The tax break is a way of allowing families to pass on their housing wealth. It applies when property is passed on to direct descendants.
Individuals are able to pass on assets worth up to £325,000 (the nil rate band) when they die, before inheritance tax at 40 per cent is payable. But the number of estates exceeding this limit has climbed after years of rapid house price growth.
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