The Telegraph recently reported that the inheritance tax take by HMRC in the tax year ending 5th April 2013 was £3.1bn, which represented an increase in revenues for a third year in a row. Previously the revenues were £2.9bn in the year ending 5th April 2012.
The continued rise in inheritance taxes paid is being put down to a recovery in the housing market, leading to higher value estates once again, as well as increased activity from HMRC themselves to ensure all taxes are collected.
That puts a bigger emphasis on those whose estate is liable to inheritance tax to take action to avoid having to pay the tax.
Working hard to earn money that is taxed, so that you can spend money on goods and services that are taxed, or invest it and pay tax on the income and gains, and then finally leaving whatever is left to your beneficiaries who will have to pay a whopping 40% tax on the entire value, after the nil rate band of £325,000 has been accounted for, is an incredible life story of how one funds the Government.
To earn £10,000 and be able to keep £6,000 for yourself and give £4,000 to the Government is difficult to stomach in any situation. But to have £100,000 and know that you could be giving just £60,000 to your children or grandchildren, and £40,000 to the Government is careless.
Unless your plan is for the Government to inherit a significant sum of your wealth then it would be your duty to ensure you know that your money and assets will go to where you really wish them to go and be used and benefited from in the way you would want them to be.