It’s time for baby boomers to face inheritance tax conundrums

It’s a simple fact that here on the Thames on the edge of one of the most prestigious cities on the planet we are in a very desirable place to live.

There are winners and losers as the price of property around Staines has skyrocketed in recent decades and the baby boomers, those born just after the war are, in the main, the winners.

Many of them are now asset rich, having been on the property ladder for decades, but possibly unaware of how the tax man might get a slice of their assets once they have passed away.

As inheritance tax experts here in Staines we have carefully advised the most tax efficient methods to many in the community and many ignoring the subject are finding themselves falling into the bracket where they could be giving away vast sums.

Recent data from HM Revenue and Customs (HMRC) shows that IHT receipts for the period April to June 2024 reached £2 billion, an £83 million increase from the same period last year.

As things currently stand, the current nil band rate for IHT is set to remain unchanged until 2028. The new Chancellor of the Exchequer Rachel Reeves has not signalled any plans to lift this allowance freeze.

However, with the inheritance tax threshold at £325,000 per person it does mean as families transfer wealth to the next generation, there is a possibility of the threshold being breached.

In the run up to the General Election much was made in the media about the public finances and how with pledges not to increase income tax being made by both main parties. It led to speculation about how else to pad out the depleted public purse, which has taken such a battering in recent years. Inheritance tax was one area where there was much debate.

If you are one of those in the baby boom generation and the financial bracket where you believe your family could be affected, it really is worth investigating intelligent tax planning now, rather than waiting for a change in the law that could have negative consequences.

For the great and the good of families here in this lovely region on the outskirts of London, it is vital to face this issue, so families who have made Staines, Spelthorne and the surrounding villages home can ensure the next generation of their families continue to enjoy the pleasures of living in this area.

If you wish to ask any questions about your inheritance tax situation do not hesitate to get in touch with us.