Rise in millionaire numbers will mean even more pushed into the UK inheritance tax net.
According to recent research carried out by financial services company NFU Mutual there could be a rise to almost 500,000 millionaires in the UK this year meaning the growth in wealth will push more people into the inheritance tax net – especially given that the nil-rate band remains frozen at £325,000 until 2021.
By analysing HMRC’s UK Personal Wealth Statistics, NFU Mutual found the number of millionaires in the UK rose 27 per cent to 409,000 between 2008 and 2013.
The company has predicted the number of millionaires in the UK could reach 495,000 this year and 585,000 by 2020, based on the rate of previous wealth increases.
It is inevitable that as a result more and more people are likely to need to consider inheritance tax planning. The individuals ought to make use of exemptions as a starting point and that there are other tried and tested schemes such as loan trusts and discounted gift trusts which can be used to provide an inheritance tax reduction with continued access for the settlor and a insured family trust offers flexibility at a fair price.
If you would like further advice on Inheritance Tax Planning or any other financial matters please call on 01793 771093.