The latest forecasts from Her Majesty's Revenue and Customs (HMRC) show a planned increase of 9% in the amount of Inheritance Tax being collected this financial year (2006/07). The new annual total is expected to be £3.56 billion. This growth in tax is despite a small increase in the amount that any individual can pass on tax free, from £275,000 last year to £285,000 this year.
Further rumours amongst financial specialists suggest that the Chancellor is looking at additional means of increasing the tax taken, including removing the right to vary a Will after death (an Instrument of Variation). Whatever the truth of the rumours it is clear that making a Will is becoming ever more vital in order to stop the Government taking a bigger share of your family's inheritance.