IHT receipts fall for first time in a decade but not everyone will benefit

3 min read

 
Helen Morrissey, Personal Finance Specialist
Helen Morrissey

Corporate PR Specialist – Long Term Savings

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Clare Moffat, head of intermediary development and technical at Royal London comments on this morning’s release of IHT receipts for 2019/20.

“In 2019-20 HMRC received £5.2 billion, a decrease of 4% (£223 million) on 2018-19. The decrease, the first in a decade,  is not unexpected and is due to the introduction of the Residence Nil Rate Band on 6 April 2017. This gives married couples and those in civil partnerships a potential maximum joint estate of £1m before IHT becomes payable. However, these provisions do not apply to everyone.

"If you are a cohabiting couple this will not apply to you. In addition the Residence Nil Band can only be used for direct descendants. This means that if you are single, have no children and your property is passing to a nephew that might be your full time carer then your estate would only be able to claim the Nil Rand Band of £325,000. Careful estate planning is vital to avoid nasty shocks and potential huge tax bills.”

-ENDS-

Notes to Editors

The release of IHT receipts can be found here.

For further information please contact:

Helen Morrissey, Corporate PR Specialist – Long Term Savings

About Royal London:

Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £138.9 billion, 8.6 million policies in force and 4,126 employees. Figures quoted are as at 31 December 2019.