Energising IHT Mitigation with Renewables
- On July 19, 2019
- By Vass Test
There is a clear argument for advisers to marry up the IHT needs of their clients with the business relief opportunity on offer from investing in renewable energy, believes Andrew Aldridge, Partner and Head of Marketing at Deepbridge.
Inheritance tax (IHT) receipts continue to increase year on year, with the latest figures from HMRC stating that receipts in 2018/19 totalled £5.4bn – almost 4% up on the £5.2bn it took in the previous year.
Much of the analysis here focuses on the impact of rising house prices over the past couple of decades and how – especially in areas like London and the South East – property values increasingly exceed an individual’s nil-rate band and residence nil-rate band allowances on their own, without consideration for any other assets.
Even with the government changing the rules and allowing a family home – worth up to £850,000 – to be passed on to children or grandchildren, essentially giving another £100,000 allowance to each individual, the level of IHT take has continued to rise.
Many professionals put this down to a lack of advice being taken, the complexity of the system and the fact that many individuals simply do not know what they do not know – those ‘unknown unknowns,’ as Donald Rumsfeld famously said.
There is no doubting, however, that IHT planning continues to be a core focus for many clients and, that those who are able to take advice, will undoubtedly be looking for their adviser to ensure they do all they can to help them (and their estates) mitigate against having to pay significant amounts.
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