The number of households projected to fall into the scope of inheritance tax (IHT) could more than triple, from 1.6 million to 5.1 million by 2027, data from Transact predicts.
Latest figures from the platform's IHT index, which was set up in 2022, stated IHT exposure had been easing, however, reforms bringing unused pension assets into estate calculations from 2027 will "reverse this progress in a single step". Transact said excluding pension wealth, the proportion of households potentially liable for IHT fell from 9.4% in 2014–16 to 6% in 2020-22, "largely because of the introduction of the residence nil rate band". It said the number of households potentially liable could top 5 million and at the same time, the total value of estates subject to potential ...
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