Inheritance tax (IHT) revenue hit £2.2 billion in the first quarter of the tax year, a £100 million rise from last year. The increase stems from frozen thresholds, rising property values, and inflation, affecting more families. The nil-rate band has been fixed at £325,000 since 2009 and will remain until at least 2030. Critics label the freezes as stealth taxes, leading to more individuals facing IHT. Financial planners suggest families review estate strategies, considering lifetime gifts to mitigate IHT liabilities.
"As property values and inflation continue to rise, many families who would not consider themselves wealthy are now being caught by a tax once associated only with the very rich."
"These freezes are a form of stealth tax, designed to quietly increase the government's take without the political backlash of a headline-grabbing hike."
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