"Our new IHT calculator will help provide guidance for them and their customers on tax planning and potential future liabilities."
- Mark Lambert, Head of Onshore Bond Distribution at HSBC Life UK
According to the recent HMRC data published by GOV.UK, the total Inheritance Tax (IHT) receipts for April 2023 to March 2024 rose to £7.5bn – this is £0.4bn higher than last year. In light of this increase, the Office for Budget Responsibility forecasts IHT receipts will grow to £8.4bn in the 27/28 tax year.
In response to these forecasts, HSBC Life UK has launched an IHT calculator designed to estimate current and future customer liabilities, including gifting plans and increased asset values. Advisers can select from a range of options, such as current IHT liabilities, and future liabilities based on increased asset values.
Guidance also includes information on IHT asset reliefs such as Business Relief and Agricultural Relief, as well as exempt gifts including annual exemptions, small gifts exemptions, normal expenditure out of income, and marriage gifts exemptions.
“Advisers are seeing increasing demand for support with tax planning from customers and that increase will no doubt continue given the freeze in IHT nil rate bands and the growing number of clients becoming higher rate and additional rate taxpayers,” said Mark Lambert, Head of Onshore Bond Distribution at HSBC Life UK. He highlighted that one of HSBC Life’s strategic priorities is to deliver good outcomes for customers by supporting advisers. “Our new IHT calculator will help provide guidance for them and their customers on tax planning and potential future liabilities,” he said.
