Britons are warned of the most “common mistakes” seen when passing on wealth which can leave people paying thousands of pounds more to HMRC.
Following the latest inheritance tax receipts data, an expert has shared costly mistakes they have see their clients make when estate planning.
HM Revenue and Customs (HMRC) collected £700million in inheritance tax last month – this is £85million, or 7.2 per cent, more in inheritance tax than a year ago.
By 2028/29, inheritance tax receipts are expected to hit £9billion. For 2023/24, the figure stood at £7.5billion.
The number of estates paying inheritance tax is estimated to have increased by 15.9 per cent in three years.
HMRC said the increase in receipts last month was, in part, due to the Government’s March 2021 and Autumn 2022 decisions to maintain the tax-free thresholds at their 2020 to 2021 levels up until 2028.
Mark Stubberfield, head of private client at law firm Taylor Rose MW explained the most common mistakes he sees which can leave Britons giving thousands more away to the tax man.
He said: “The most common mistakes include getting confused with the rules with gifts.
“Whilst most gifts fall outside of an estate once seven years have passed, if someone retains a benefit in a gift then it will always remain in your estate whether or not seven years has passed.
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