“Inheritance tax on course for record year of receipts (again) amid calls to scrap it”

Jan 25, 2024 | Tax

Will he/won’t he abolish Inheritance Tax? The Pre-Budget rumour is still out there, perhaps ‘running it up the flagpole to see if it catches the wind’, or perhaps to distract from other rabbits which may be pulled from Jeremy H’s figurative hat. And yet, IHT is bringing in record amounts, on track for £5.7bn in the current tax year. But contrast that with CGT, £17.8bn and income tax £1025bn, of which the top 1% of earners pay around £21bn, and you can see why ending IHT would sound good and not actually make a big dent in the finances. Particularly as it would more than likely be replaced by a ‘gift tax’ of some kind, which will sound nicer but end up raising more. Remember, too, that previous governments proudly abolished the predecessors of IHT. Estate Duty became Capital Transfer Tax and, yes, that became Inheritance Tax. And not a lot changed.

Read more here

“More than a third of pots non-advised when entering drawdown”

“More than a third of pots non-advised when entering drawdown”

Three headlines this week which should give rise to at least a bit of concern amongst the adviser community. More than should be are taking money, taxable as well as tax-free, from their pensions without taking advice; which might be fine, but how it’s done can have a big effect on both tax and what might be left for the future.