Pensioners have hit out at the taxman over the "most unfair tax in Britain" as HMRC rakes in billions.Inheritance tax receipts rose to £7.5billion last year with more households being forced to pay up to HMRC amid the Cost of Living crisis.
A majority of high-earning Britons are in favour of cutting the rate of inheritance tax (IHT), a poll shows. Figures from HMRC show that IHT receipts for April 2023 to March 2024 hit £7.5billion which represents a £400,000 annual rise.
48 per cent of retired respondents consider inheritance tax to be “the most unfair tax in Britain”. Megan Jenkins, a partner at Saltus, said: “Our report shows that, while the majority of high-net-worth individuals (HNWI) accept IHT as a legitimate form of taxation, they think it is too high at the current level.
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“There are already many options for people who want to pass on their wealth as efficiently as possible. These include gifting and giving away cash during their lifetimes – and our report shows around three quarters of HNWIs are currently financially supporting their families through the cost-of-living crisis – as well as trust funds, charitable giving and funeral plans.”
The tax expert warned that thousands of families are falling foul of “one of the biggest mistakes” when it comes to IHT. Jenkins added: “Mitigating IHT is high on many people’s financial objectives, and while there are many ways to reduce IHT liability, they must be done right.
“Any mistakes can not only impact the effectiveness of any tax planning, but potentially leave the estate open to an unexpected IHT bill. One of the biggest mistakes people make is not being aware of the IHT thresholds.
“We find many people are worrying about an IHT problem they don’t have, while others are not aware of one they do.”
