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Press comment: Inheritance tax is still not widely understood

22 Jan 2020

Following today’s publication of the HMRC IHT receipt statistics (December 2019), please find below comments from Paul Latham, Managing Director at Octopus Investments:

“There is always fluctuation in receipts throughout the year, but the overarching trend over the last decade has only been going one way, with a continued rise in the amount of inheritance tax being paid.

“Due to rising property prices over recent years, more families are likely to face an inheritance tax bill. In fact, the amount of inheritance tax collected is expected to reach £6.9 billion by 2023-24, an increase of £1.5 billion in just five years. And although it’s often in the headlines, inheritance tax is still not widely understood.

“The good news is there are lots of positive things people can do to reduce their inheritance tax bill. It could be ‘lifetime gifting’ of money to children to help them buy a home, or by stimulating the economy and investing into early stage companies that qualify for government backed relief.

“With careful financial planning, everyone with an inheritance tax liability should be able to pass on as much of their estate to their loved ones as possible. But what’s vital is that people get quality financial advice to understand the options and what’s right for them.”

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For journalists in their professional capacity only. The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest. Tax treatment depends on individual circumstances and may change in the future. Tax reliefs depend on the portfolio companies maintaining their qualifying status. The shares of the smaller companies we invest in could fall or rise in value more than shares listed on the main market of the London Stock Exchange. They may also be harder to sell. Personal opinions may change and should not be seen as advice or a recommendation. We do not offer investment or tax advice. We recommend investors seek professional advice before deciding to invest. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: January 2020 

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