Frozen thresholds combined with exponential cost rises across the UK continue to contribute to a sizeable financial burden which an increasing number of families face. And while there are numerous inheritance tax allowances and exemptions to make the most of, one expert has warned that dated rules can land cohabitating couples in trouble - especially if they aren't proactive with their planning.
Crowe UK private client team partner Richard Bull, said: "Inheritance tax (IHT) in some quarters is the most hated of all taxes despite raising a relatively modest £6.1billion in the whole of 2021-22, compared to the monthly receipts in April 2023 of £70.9billion - a mere drop in the ocean for the UK’s balance of payments."
In consideration, Mr Bull detailed how the UK's IHT regime currently contains numerous 'very generous' exemptions, allowing families to defer and mitigate their tax payable - when wealth passes down the direct bloodline. Yet, Mr Bull, added: "Those in ‘non-traditional’ families could face difficult financial and personal decisions following the death of a loved one," The Express reports.
