The ‘eye-watering’ charge that will add thousands to inheritance tax bills—The Telegraph
Partner Kieran Bowe has been quoted in an article in The Telegraph which examines the impact increased interest on unpaid Inheritance Tax bills will have on families.
Among the announcements contained in the Autumn Budget delivered on 30 October was a decision to increase the interest rate HM Revenue and Customs can charge on unpaid tax by 1.5 percentage points, a backdoor raid that experts say will result in bereaved families paying up to £750 more a month in inheritance tax bills.
Kieran breaks down the financial implications of the change, commenting:
The Government’s proposal to increase the interest charge adds further financial pressure to already hard-pressed bereaved families. The cost of interest on projected rates of interest from April 2025 of just £100,000 of inheritance tax amounts to £9,000 per annum. An inheritance tax liability of £1 million could amount to £90,000 per annum – or nearly £1,750 of interest per week on unpaid tax.
The full article is available read at The Telegraph by subscription only.
Kieran Bowe is a partner in the private client team. He specialises in tax, estate and succession planning, often acting for high-net-worth individuals, entrepreneurs and business owners.
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