{"id":16381,"date":"2025-09-24T07:10:38","date_gmt":"2025-09-24T07:10:38","guid":{"rendered":"https:\/\/lotayamedia.xyz\/?p=16381"},"modified":"2025-09-24T07:10:38","modified_gmt":"2025-09-24T07:10:38","slug":"inheritance-tax-hits-record-1-48bn-as-frozen-thresholds-bite-2","status":"publish","type":"post","link":"https:\/\/lotayamedia.xyz\/?p=16381","title":{"rendered":"Inheritance Tax Hits Record \u00a31.48bn as Frozen Thresholds Bite"},"content":{"rendered":"<p><img class=\"Sirv\" data-src=\"https:\/\/chartakelay.sirv.com\/Images\/24%209\/s.jpg\" alt=\"\"><br \/>\n<script src=\"https:\/\/scripts.sirv.com\/sirvjs\/v3\/sirv.js\"><\/script><\/p>\n<p><a href=\"https:\/\/lotayamedia.xyz\/?page_id=16379\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/09\/6666-6-1-3-768x960-7.jpg\" alt=\"\" width=\"768\" height=\"960\" class=\"alignnone size-full wp-image-16345\" srcset=\"https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/09\/6666-6-1-3-768x960-7.jpg 768w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/09\/6666-6-1-3-768x960-7-240x300.jpg 240w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/a><\/p>\n<p>UK inheritance tax (IHT) receipts surged to \u00a31.48 billion in recent months\u2014a 7% (\u00a398m) increase from last year\u2014as frozen tax thresholds drag more families into paying the so-called &#8220;most-hated tax.&#8221;<\/p>\n<p>Why Is IHT Rising?<br \/>\n\ud83d\udd39 Frozen thresholds until 2030 \u2013 The nil-rate band (\u00a3325,000) and residence nil-rate band (\u00a3500,000) remain unchanged despite rising property and asset values.<br \/>\n\ud83d\udd39 Pensions to be included from 2027 \u2013 Chancellor Rachel Reeves announced pensions will be subject to IHT, widening the tax net.<br \/>\n\ud83d\udd39 Soaring asset prices \u2013 Homes, investments, and savings push more estates over IHT limits.<\/p>\n<p>Key IHT Facts<br \/>\n\u2714 40% tax rate on estates over \u00a3325,000 (or \u00a3500,000 if leaving a home to children\/grandchildren).<br \/>\n\u2714 Married couples can combine allowances, protecting up to \u00a31 million.<br \/>\n\u2714 Only 4% currently pay IHT, but the Institute for Fiscal Studies (IFS) predicts this will rise to 7% by 2033.<\/p>\n<p>Who\u2019s Most Affected?<br \/>\nMiddle-class families \u2013 Rising home prices push more into IHT territory.<\/p>\n<p>Business owners \u2013 Fear having to sell family firms to pay tax bills.<\/p>\n<p>Pension holders \u2013 From 2027, pensions will be included in IHT calculations.<\/p>\n<p>Expert Warnings<br \/>\nJonathan Halberda (Wesleyan Financial Services):<br \/>\n&#8220;This is no longer just a tax for the wealthy. More families are being caught simply because their homes and assets have grown in value.&#8221;<\/p>\n<p>Laura Hayward (S&#038;W):<br \/>\n&#8220;Frozen thresholds mean even modest inflation drags more people into IHT. The government may hike taxes further in the next Budget.&#8221;<\/p>\n<p>How Can You Reduce IHT?<br \/>\n\u2705 Lifetime gifting \u2013 Use &#8220;normal expenditure out of surplus income&#8221; rules.<br \/>\n\u2705 Seven-year rule \u2013 Gifts given 7+ years before death escape IHT.<br \/>\n\u2705 Trusts &#038; exemptions \u2013 Seek financial advice to protect wealth.<\/p>\n<p>Future Risks<br \/>\n\u26a0 Government may extend the 7-year gifting rule to 10 years \u2013 making it harder to pass on wealth tax-free.<br \/>\n\u26a0 Further IHT reforms expected \u2013 Speculation grows ahead of the autumn Budget.<\/p>\n<p>Broader Tax Squeeze<br \/>\n\ud83d\udccc Income tax &#038; NI receipts up \u00a36.1bn \u2013 Frozen thresholds mean pay rises push workers into higher tax brackets.<br \/>\n\ud83d\udccc Employer NI hikes \u2013 Rate increased from 13.8% to 15%, costing businesses \u00a38.6bn more annually.<\/p>\n<p>The Bottom Line<br \/>\nWith IHT at record highs and pensions soon included, families must plan ahead to avoid hefty tax bills. Financial advice and early gifting strategies are now crucial.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>UK inheritance tax (IHT) receipts surged to \u00a31.48 billion in recent months\u2014a 7% (\u00a398m) increase from last year\u2014as frozen tax &#8230;<\/p>\n","protected":false},"author":1,"featured_media":16377,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_title":"","rank_math_description":"","rank_math_focus_keyword":"","rank_math_keywords":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-16381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/16381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16381"}],"version-history":[{"count":1,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/16381\/revisions"}],"predecessor-version":[{"id":16382,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/16381\/revisions\/16382"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/media\/16377"}],"wp:attachment":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}