UK Tops inheritance tax league table
Figures announced by the ONS have shown that £3.4bn was raised from death duties last year, a 9.7% increase on the previous year. The average value of estates has risen, in part due to the increased inflation of house prices, yet the nil rate band for inheritance tax has remained static at £325,000 since 2009.
These figures support findings by UHY Hacker Young that show that the UK and Ireland have the highest proportion of inheritance tax of any major world economy. The Government typically takes 25.8% from the individual’s estate, compared to a global average of 7.67%.
Many countries have no estate tax, such as Australia, New Zealand, China, India & Russia, as to simplify their tax systems and encourage wealth creation.
Don’t expect any changes soon. Inheritance tax earns significant money for the treasury, and any changes (such as the 2010 manifesto pledge by the Conservatives to increase the nil rate band to £1m) are unlikely to happen.