Has Covid-19 impacted inheritance tax?

When it comes to Covid-19, it seems that the global pandemic has had an impact on so many different parts of our lives. Some that are obvious, whereas others that we may not realise can be affected.

Kent tax advisors, can help you keep on top of the latest news that relates to the world of tax. This means that we are interested to know more about how Covid-19 has impacted certain aspects of taxation, such as inheritance tax.

At the moment, we don’t precisely know what the impact of Covid-19 is going to be in the long-term However, some of the indicators of what might happen in the future have already been seen.

There is an increased value of estates

Inheritance tax is charged on however much the deceased person’s estate sits above £325,000. The rate of this is 40%. After the global pandemic, the prices of houses (no matter where they are and what type of property they are) has increased.

This has meant that more properties are now above this inheritance tax threshold and then, in turn, will need to make a payment on their inheritance.

There is not as much inheritance tax planning

With property prices soaring, this has meant that more people are now being caught out by inheritance tax. Especially those who would not have otherwise had to pay it out. Because they would not have been expecting to pay this tax, they may not have properly planned for how they could pay the required amount.

More of us have lost people

Not only this, but the pandemic has caused more deaths than we would typically see during a “normal” year. This meant that people we were not expecting to lose would have sadly lost their lives and left their estates behind.

This has meant that the usual planning and discussions that may come as someone nears the end of their lives; would not have happened. Whilst this has meant that many people did not get a chance to say goodbye to those they love, it has also meant that the plans in place would not have been made..

Whilst you may not be prepared to pay inheritance tax for any reason, the good news is that there are things that you can do to mitigate this. To know more about this, it is essential to take the time to read up more about inheritance tax or to speak to an expert in how to reduce how much it could cost you or what you may need to plan on paying out for this tax.

If you need to know more about inheritance tax and where you stand its best to get in touch with an expert Kent accountants for probate services, they can then advise you on what you need to know about tax and how it relates to you and your situation.

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