Caution: Changes to Inheritance Tax?
The Labour Party’s 2024 Manifesto highlights a prominent drive towards ‘kickstarting economic growth’ which may result in your estate becoming at risk of a costly Inheritance Tax (IHT) bill meaning you might leave less to the ones you love. The current Government’s manifesto aims:
“To secure the highest sustained growth in the G7 – with good jobs and productivity growth in every part of the country making everyone, not just a few, better off.”
What’s more, with a budget not expected until October 2024, key questions surrounding how the IHT regime will be impacted are yet to be answered. Labour’s aim for economic growth is self-admittedly reliant on a “broad base” of funding, which might include the tightening of IHT thresholds, rules and allowances.
Another likely change is the way gifts are taxed. According to The Guardian, Labour is considering options that could make it more difficult to gift money and assets tax free. Coupled with the current record levels of Inheritance Tax receipts, these potential changes should be a real cause for concern for you and your loved ones’ estates.
The uncertainty of what tax changes might look like is daunting, it is therefore important to seek quality advice at the earliest possible opportunity.
Planning Ahead
It is beneficial to regularly review your estate. By reviewing your estate, you could make your estate more tax efficient. Whilst reviewing your estate, you should pay careful attention to:
- Your Will – is your Will up to date?
- Assets – have your assets increased or are they likely to?
- Law – has the law changed which affects how you wish to leave your assets?
- Tax – is your Will as tax efficient as it could be?
Any of the above points should cause you to consider reviewing your estate, to make sure your estate is as tax efficient as possible. Given potential changes in the law surrounding tax are likely, it is essential to remain on top of your estate and seek expert advice if you have any concerns.
While it may seem daunting, it need not be, provided expert advice is taken at the earliest possible opportunity and keeping your Will and estate planning regularly reviewed.
How can Ellis Jones help?
Our specialist and professional team of estate planners are well versed in advising on and structuring estates. You can contact our Wills, Trusts and Probate team on 01202 525333 or by emailing richard.smith@ellisjones.co.uk. You can also contact our Wills, Trusts and Probate team by emailing willenquiries@ellisjones.co.uk.
How can we help?
When you submit this form an email will be sent to the relevant department who will contact you within 48 hours. If you require urgent advice please call 01202 525333.
