HMRC took a record £5.2 billion in IHT in 2017/18. IHT is calculated on the value of a person’s estate when they die.
It would seem however that not all estates claim the allowances that can be claimed, meaning that more tax is paid than is due.
These claimable allowances include: –
- an individual nil-rate band allowance of £325,000;
- a transferable nil-rate band (of up to £650,000 for a married couple);
- the main residence nil-rate band.
In addition, in some estates, agricultural or business property relief can be claimed.
It is estimated that just 3,065 estates claimed all the available allowance resulting in unnecessary IHT being paid in other estates.