Inheritance tax (IHT) receipts for April to September 2024 were £4.3bn, up by £0.4bn compared to the same period last year.

The figures, released ahead of the upcoming Budget by HM Revenue and Customs (HMRC), show a trend of rising IHT revenues.

The £325,000 nil-rate band (NRB) threshold for IHT has remained unchanged since 2009, while the residential nil-rate band threshold, introduced between 2017 and 2020, provides an additional £175,000 allowance under specific conditions.

Gross tax and National Insurance contributions (NICs) for the same period reached £406.3bn, an increase of £11.1bn year-on-year.

Meanwhile, receipts from income tax, capital gains tax (CGT) and NICs amounted to £226.8bn, up £6.2bn from the previous year.

Laura Hayward, tax partner at Evelyn Partners, said: “The steady annual rise in IHT receipts has been ingrained in recent years as inflation has dragged more assets and more estates over the frozen nil-rate bands.

“Any changes aimed at increasing the IHT take beyond this fiscal drag effect are likely to reap outsize results over the coming years as the baby boomer generation reaches average mortality.

“So, it’s no surprise IHT is at the centre of Budget speculation again, with firm reports claiming business and agricultural property reliefs will be reformed and the gifting rules revamped.

“We have spoken to many people this summer who were bringing forward plans to gift substantial assets, not just to start the seven-year clock ticking, but also to pre-empt an expected CGT rise.

“It’s not out of the question that the chancellor could also look at the nil-rate bands, as the residential NRB has come under criticism for discriminating against those who can’t or don’t want to leave their main property to a direct descendant.”

Alastair Black, head of savings policy at Abrdn, said: “Families will be closely watching the upcoming Autumn Budget for any changes to IHT, with rumours rife that the chancellor will look to raise tax on inheritances to help fill the now reported £40bn target.

“One of the more likely changes would be to bring pensions into IHT’s scope. But I doubt they will go to a full 40% charge as they won’t want to encourage consumers to use up their pension more quickly. It’s a balancing act. Further actual tax revenues could take a long time to come through, so changing the gifting rules to simplify and shorten seem likely too.”

Chancellor Reeves ‘wrapping herself in a straight jacket’ ahead of Budget

David Denton, technical consultant at Quilter Cheviot, said: “IHT is a highly emotive issue, and it has been ripe for reform and simplification for many years given it is full of impenetrable and irrelevant details in need of review.

“Historically, inheritance tax has been viewed as a tax on the wealthy, but this is simply no longer the case. IHT is one of the most hated taxes in Britain and can be incredibly polarising given the rich can often avoid it by employing expertise to help them navigate the complexities of the tax and the available reliefs, while those without such resource can be disadvantaged.

“If reports are true and Labour opts to make IHT more punitive, it could choose to balance this by modernising gifting laws. Simplifying the IHT regime and increasing the annual gifting exemption could ease the complexity of transferring assets and help families pass wealth on during their lifetime. Raising the gifting timescale would encourage earlier wealth transfer, potentially boosting consumer spending.

Andrew Tully, technical services director at Nucleus, said: “For IHT, changes could be made such as scrapping or updating the rules on agricultural land and business relief. Currently, a person can claim up to 100% relief on the inheritance of agricultural land if it is being actively farmed. This could be reduced, or certain limitations placed on the maximum value of the relief.

“Changes could also be made to the IHT benefits of holding shares on the Alternative Investment Market (AIM). AIM shares need to qualify for Business Property Relief and be held for more than two years at the time of death to qualify for IHT exemption. However, this may run contrary to the desire to increase investment in UK businesses, to drive further growth.

“Advisers can help clients mitigate these taxes by setting up trusts, making use of gift allowances, spousal exemption and using a pension to pass on wealth to family in a tax-efficient way. Additionally, equalising assets between spouses and civil partners, and making use of the “no gain no loss” disposal, could mean all exemptions can be utilised and household income increased if there is a disparity in the rates of tax each spouse pays.

“Alternatively, people could hold assets within a tax-efficient wrapper such as an Isa, pension or bond.”

THOUSANDS of pensioners who will no longer receive the Winter Fuel Payment are set to get grants worth £175.

Almost 10 million pensioners will not receive a Winter Fuel Payment which is worth up to £300 this year after chancellor Rachel Reeves changed the qualifying rules.

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From this winter the payments will be means-tested and will only be given to people receiving Pension Credit and several other benefits.

The cash were previously available to anyone over the age of 66 regardless of their financial situation.

As a result, many households are worried about how to make ends meet this winter and are looking for ways to get support with essential costs such as food, water and energy bills.

Some will be able to claim support from their local council through the Household Support Fund.

The Government has given money to local councils in England who will then decide how to distribute it to people who are eligible for support.

What households are entitled to and how much they will get varies depending on where they live.

The current round of support is worth £421million after the scheme was extended until April 2025.

Tower Hamlets council has revealed a £1million package of support to help households this winter.

Some of this money will be used to provide grants worth £175 to households who will no longer receive the Winter Fuel Allowance.

Tower Hamlets council said it expects nearly 5,000 pensioners to be eligible.

Payments will be made to those eligible in the coming months.

Executive Mayor of Tower Hamlets, Lutfur Rahman, said: “Making the Winter Fuel payment means-tested will have a detrimental effect on pensioners who are already facing the rising costs of energy bills.   

“This creates a risk that pensioners will not turn their heating on for fear of not being able to pay the bills, which is wrong. 

“This is why we are stepping in and providing a £175 safety net for those who will be missing out.”  

What is the Winter Fuel Payment?

Consumer reporter Sam Walker explains all you need to know about the payment.

The Winter Fuel Payment is an annual tax-free benefit designed to help cover the cost of heating through the colder months.

Most who are eligible receive the payment automatically.

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Those who qualify are usually told via a letter sent in October or November each year.

If you do meet the criteria but don’t automatically get the Winter Fuel Payment, you will have to apply on the government’s website.

You’ll qualify for a Winter Fuel Payment this winter if:

• you were born on or before September 23, 1958
• you lived in the UK for at least one day during the week of September 16 to 22, 2024, known as the “qualifying week”
• you receive Pension Credit, Universal Credit, ESA, JSA, Income Support, Child Tax Credit or Working Tax Credit

If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:

• you live in Switzerland or a EEA country
• you have a “genuine and sufficient” link with the UK social security system, such as having lived or worked in the UK and having a family in the UK

But there are exclusions – you can’t get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain.

This is because the average winter temperature is higher than the warmest region of the UK.

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You will also not qualify if you:

• are in hospital getting free treatment for more than a year
• need permission to enter the UK and your granted leave states that you can not claim public funds
• were in prison for the whole “qualifying week”
• lived in a care home for the whole time between 26 June to 24 September 2023, and got Pension Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance

Payments are usually made between November and December, with some made up until the end of January the following year.

Tower Hamlets will also work to increase the number of pensioners in the borough who are eligible for Pension Credit but are not claiming.

It estimates that 4,500 residents could be eligible for the benefit, which is worth over £3,900 a year.

Pension Credit gives you extra money to help with your living costs if you are over 66 and on a low income.

It also opens doors to other support including the Winter Fuel Payment.

To be eligible you must have an income which is below £218.15 a week if you are single or £332.95 as a couple.

This is known as the “guarantee” part of the credit.

Even if your income is higher you could still claim if you meet other requirements, such as having a disability, being a carer, having extra housing costs or living with a child.

If you have more than £10,000 in savings then you may find that your payments are cut or reduced.

But it is still worth applying even if you only get a small amount of cash each week.

Residents have until December 21 to complete an application.

The London Borough of Tower Hamlets Outreach Team can support claims through its website.

Can I get help if I don’t live in Tower Hamlets?

To receive help you will need to check with your local council, which is in charge of distributing funding.

You can find your local council using the gov.uk council finder tool.

There should be information on your council’s website about how to apply.

You can also call them to ask for more details.

Each council has a different application process, which will vary depending on where you live.

This means that the criteria you will need to meet to access the fund could also vary.

In some areas you do not need to apply for help as your council will contact you if you are eligible instead.

What are other councils offering?

Residents in Birmingham can get £200 to help pay for household essentials including energy and food bills.

Meanwhile, West Berkshire Council has set aside £45,000 for struggling pensioners this winter, with priority access for those no longer eligible for winter fuel payments.

In Devon pensioners and households receiving welfare benefits can apply to receive cash from the council’s £5million Household Support Fund budget.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Can you borrow from your Supplemental Security Income or SSI? The short answer is no. But while you can’t borrow from your SSI, the good news is that loan options may be available for people receiving SSI payments from the Social Security Administration. This article will look at some personal loan options you may qualify for.

What Loan Options Are Available for People Who Receive SSI?

While many people assume they may not be able to qualify for a loan if they are on SSI, there are several options available. Qualifying, in some cases, maybe a bit more challenging, but it’s certainly possible. In some instances, SSI benefits and Social Security payments could count as income for personal loan applicants. This, of course, depends on the type of loan and the lender.

Here’s a look at some options that might be easier to qualify for if you’re receiving SSI:

Secured Personal Loan

These loans require collateral, which is something of value, like a car; because of this, they carry a lower risk for the lender. You may be able to qualify for a secured loan even if you’re on a limited income or have a low credit score. Keep in mind that these loans carry their risks for the borrower. If you fail to repay the loan, you may lose the asset you used as collateral, such as your vehicle.

Credit Card Cash Advance

With a cash advance, you withdraw cash with a credit card from an ATM. Getting funds this way is easy, but there is a downside to this. You may be charged a cash advance fee, which is either a flat rate or a percentage of the amount you borrowed.  You may also be charged an ATM fee for the transaction, and the interest rate on cash advances is much higher than if you were making a typical purchase with your credit card. It’s also important to note that interest starts from the day of the transaction for the cash advance, and there is no grace period.

Home Equity Loan or HELOC

A home equity loan and a home equity line of credit (HELOC) are options that allow you to borrow funds by using the equity you have in your home. A home equity loan provides a lump sum of money with a fixed interest rate, which you pay back in monthly instalments. A HELOC functions like a credit card and gives you access to a revolving line of credit with a variable interest rate that you can borrow from as you need to. With a HELOC, you’ll make interest-only payments during the draw period, followed by payments that include both the principal and interest during the repayment period.

Can a Loan Impact SSI Benefits?

If you take out a loan, the money you receive isn’t considered income and won’t affect your SSI benefits. However, if you get a loan and don’t use it all within a month, it will count toward your SSI resource limit for the following month.

If you’re still unsure about how a loan may impact your SSI benefits, you should check with the Social Security Administration (SSA) for more information before taking the loan.

The Bottom Line

If you’re looking to obtain a loan, it’s good to know that there are options available and that, in some cases, SSI can count toward your income. Just make sure you assess your available options and read the terms and conditions carefully before you sign on the dotted line to ensure that the loan you’re getting is right for you.

Notice: Information provided in this article is for information purposes only and does not necessarily reflect the views of finance-monthly.com or its employees. Please be sure to consult your financial advisor about your financial circumstances and options. This site may receive compensation from advertisers for links to third-party websites.

MILLIONS of households are being urged to claim a little-known DWP benefit, which could boost their state pension by up to £328 a year.

This warning is directed at unpaid carers who do not earn sufficient income to make National Insurance contributions, thereby risking their entitlement to a full state pension.

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To qualify for any state pension, you need a minimum of 10 years’ worth of NI contributions, and 35 years are required to receive the full amount worth £221 a week.

Career breaks, such as those taken to raise children or care for relatives, can result in gaps in your NI record, potentially reducing your state pension entitlement.

Fortunately, you can claim free credits to fill these gaps before voluntarily buying back any missing years.

Experts at Mobilise, a community for unpaid carers, is urging the nation’s 10million carers to apply for ‘carer’s credit’ to ensure households they can get the full new state pension.

Carer’s credit fills the gap between caring and work.

It ensures any years where you’re not paying national insurance because of time spent caring are still counted.

It doesn’t require any payments to be made and helps unpaid carers continue to build up towards that 35-year target.

Each annual credit missed could cost you 1/35th of the value of your state pension, according to wealth manager Quilter.

So, by claiming the credit, you could potentially increase your state pension by £328 annually – adding up to over £6,000 over the course of a typical retirement.

Suzanne Bourne, care expert at Mobilise, said: “If you start work at 21 and stop working at 51 to care for your partner, you will only receive a partial state pension when you turn 66.

“This could come as a huge shock and could have been avoided with the carer’s credit.

“We’re encouraging everyone to check whether they are eligible as soon as possible.

“Carer’s credit can be backdated to the start of the previous tax year, even if the person we were caring for no longer has care needs or has passed away.

“So it’s vital that you don’t leave it too long to submit your application, if you think you’re eligible.”

Before making a claim, it’s worth checking your NI record.

CHECK YOUR YEARS

If you think you’re missing National Insurance years, the first thing to do is check your state pension forecast.

You can check this and your state pension age through the government’s new ‘Check your State Pension’ tool online at gov.uk/check-state-pension.

The tool is also available through the HMRC app, which you can download free on the Apple App Store and Google Play Store.

You’ll need to log in using your Personal Tax Account login details. If you don’t already have an online HMRC account, you can register at gov.uk.

It shows you how much your state pension could increase by and what NI years you’ll need to buy or free credits to apply for to achieve this.

CHECK YOUR ELIGIBILITY FOR CARER’S CREDITS

Before making a voluntary contribution, it is important to check if the gaps in your contributions can be filled with free NI credits.

For example, carer’s credits can help fill in gaps in your NI record if you’re an unpaid or low-paid carer.

To get carer’s credit you must be:

• Aged 16 or over
• Under state pension age (66)
• Looking after one or more people for at least 20 hours a week

The person you’re looking after must get one of the following:

• Disability living allowance care component at the middle or highest rate
• Attendance allowance
• Constant attendance allowance
• Personal independence payment (PIP) daily living part
• Armed forces independence payment
• Child disability payment (CDP) care component at the middle or highest rate
• Adult disability payment daily living component at the standard or enhanced rate
• Pension age disability payment

Thousands are thought to be missing out on these NI Credits, leaving them worse off in retirement.

You can check the full list of people eligible to claim credits by visiting www.gov.uk/national-insurance-credits/eligibility.

It explains the circumstances where you’ll need to claim and when you’ll get it automatically.

TOP UP YOUR NATIONAL INSURANCE YEARS

If you don’t qualify for free NI credits in some cases, buying back missing years can be really valuable.

Voluntary contributions come at a price.

If you fill gaps between 2006/07 and 2015/16, you’ll pay the 2022/23 rates for contributions.

It is worth £15.85 a week, which means it costs £824.20 to buy one year of contributions.

As the state pension was £185.15 per week in 2022/23, this boost would add £5.29 per week or around £275 per year. 

Although you’d have to pay £8,242 (10 lots of £824.20), the annual state pension boost would be around £2,750.

Someone who was retired for 20 years would get back around £55,000 in total (before tax).

Anyone under 73 can make voluntary pension contributions, as it’s assumed everyone under this age will claim the new state pension.

If you’re below the state pension age, you can check your state pension forecast by visiting www.gov.uk/check-state-pension to determine if you’ll benefit from paying voluntary contributions.

You can also contact the Future Pension Centre by calling 0800 731 0175.

If you’ve reached state pension age, contact the Pension Service to find out if you’ll benefit from voluntary contributions.

You can contact this service in several different ways by visiting www.gov.uk/contact-pension-service.

You can usually pay voluntary contributions for the past six years.

The deadline is April 5 each year.

For example, you have until April 5, 2030, to compensate for gaps in the tax year 2023 to 2024.

The deadline has been extended for making voluntary contributions for the tax years 2016 to 2017 or 2017 to 2018.

You now have until April 5, 2025, to pay.

Find out how to pay for your contributions by visiting gov.uk/pay-voluntary-class-3-national-insurance.

The Financial Conduct Authority (FCA) has interviewed 20 finfluencers under caution for touting financial services products illegally.

It said the individuals were interviewed voluntarily using the FCA’s criminal powers. The regulator has not yet named the individuals under investigation.

The FCA also announced that it has issued 38 alerts against social-media accounts operated by finfluencers that may contain unlawful promotions.

Finfluencers, or financial influencers, are social-media personalities who use their platform to promote financial products and share insights and advice with their followers.

They are not authorised by the FCA and are unqualified to be giving financial advice to their followers, mostly younger people.

Increasing numbers of young people are falling victim to scams, and finfluencers can often play a part.

Nearly two-thirds (62%) of 18- to 29-year-olds follow social-media influencers. Of these, 74% said they trusted their advice, while 90% have been encouraged to change their financial behaviour, according to the FCA.

There has been a significant increase in finfluencers over recent years after a surge in online DIY investing.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Finfluencers are trusted by the people who follow them, often young and potentially vulnerable people attracted to the lifestyle they flaunt.

“Finfluencers need to check the products they promote to ensure they are not breaking the law and putting their followers’ livelihoods and life savings at risk.”

The regulator has taken a zero-tolerance approach to unauthorised financial promotions online.

In May, FCA brought charges against nine individuals in relation to an unauthorised foreign exchange trading scheme promoted on social media.

The individuals, many of whom were former reality TV stars, had appeared in shows including Love Island and The Only Way is Essex.

They include Holly Thompson, Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, Emmanuel Nwanze and Eva Zapico.

Nwanze was also charged with running an unauthorised investment scheme and issuing unauthorised financial promotions.

The trial has been set for 2027 at Southwark Crown Court and they face up to two years in prison if convicted.

The FCA’s finfluencer crackdown has been welcomed by regulated entities.

Paul Harris, financial services and fintech partner, Osborne Clarke, said: “This is a landmark step from the FCA, as it is the first time the FCA has sought to prosecute social-media influencers allegedly connected to the communication of unauthorised financial promotions online.

“While the decision to prosecute is significant, it is not necessarily surprising, given the warnings previously published by the FCA and the recent guidance on the publication of financial promotions on social media.”

James Alleyne, legal director in the financial services regulatory team at Kingsley Napley LLP, added: “Finfluencers need to be aware that the FCA’s perimeter is broad and it is very easy to fall within its jurisdiction even without intending to do so. Similarly, financial promotions are tightly regulated.

“Even where individuals are acting in good faith and creating what is intended to be purely educational content, it does not take much to inadvertently cross the line into regulated business and, by doing so, become exposed to a possible criminal investigation.”

Kate Smith, head of pensions at Aegon, also said: “People need to be very wary of so-called ‘finfluencers’ offering financial advice or guidance online, particularly if they are promoting products or so-called investment opportunities. Alarmingly, an increasing number of young people are falling for these.

“There are strict rules for regulated firms around online communications and the FCA make clear that firms need to take appropriate legal advice to understand their responsibilities prior to using influencers in retail investment.

“However, there are still many unauthorised financial influencers with wide followings offering non-regulated pensions and investment advice on social media and this is concerning. We strongly welcome the FCA intervening to make sure this stops.”