HSBC Life (UK) is launching an Inheritance Tax (IHT) calculator designed to estimate current and future client liabilities including gifting plans and increased asset values.
In a statement on 2 May, the global bank’s UK life arm said the new IHT tool was prompted by recent HMRC data which showed that total IHT receipts for April 2023 to March 2024 climbed to £7.5bn – £0.4bn higher than the same period last year. Government forecasts also estimate IHT receipts will grow to £8.4bn in the 27/28 tax year.
The decision was also “to enhance the support it provides for advisers and their clients”.
Advisers can select a range of options including current IHT liabilities for clients, future liabilities based on increased asset values as well as options including gifts already given and future gifting plans.
Guidance in the calculator 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.
Mark Lambert, head of onshore bond distribution, HSBC Life (UK) said: “Advisers are seeing increasing demand for support with tax planning from clients 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.
“One of HSBC Life (UK)’s strategic priorities is to deliver good outcomes for clients by supporting advisers. Our new IHT calculator will help provide guidance for them and their clients on tax planning and potential future liabilities.”
