Press Release: EV adds inheritance tax functionality to EVPro financial planning tool

Financial services technology provider EV has added inheritance tax functionality to its end-to-end financial planning solution EVPro to give advisers a realistic IHT liability calculation for their clients.

The functionality, which is available within EVPro’s Goal module, provides advisers with an IHT liability illustration based on the immediate death of an individual, or of both people in joint cases. It allows advisers to factor in charitable donations, which are exempt from IHT and can also reduce the tax rate paid from 40% to 36% if 10% or more of the estate is donated. Historic gifts can also be added to take into account the seven-year rule for Potentially Exempt Transfers in the liability calculation. 

Ashley Staples, Product Director at EV, comments:

 “The IHT threshold has been frozen at £325,000 since 2021 and in that time, tax receipts have increased by 41% according to the latest HMRC figures, while over the last ten years they have more than doubled¹, driven by rises in assets, particularly property prices. Announcements in the recent Budget, which extend the threshold freeze until 2030 and will also charge IHT on pension wealth, will increase the estimated tax take by a further 85% by 2029/30² with significantly more estates facing an IHT bill. 

“However, although the headline marginal rate for IHT is 40%, tax-free allowances, exemptions and reliefs reduced the average effective tax rate for taxpaying estates to 13% for the tax year 2021/22³. With more people being pulled into paying IHT, EVPro’s new functionality gives advice professionals a comprehensive and realistic view of their client’s tax liability and the value of assets that can be passed on to beneficiaries, which is critical to effective estate planning and intergenerational wealth transfer.” 

EV plans to continue to improve the functionality over the coming releases.

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1. IHT receipts were £7.5bn in 2023/24, £5.3 in 2020/21 and £3.4bn in 2013/14  https://assets.publishing.service.gov.uk/media/670e0bcbe84ae1fd8592f30f/NS_Table.ods. 
2. OBR estimates IHT receipts will be £13.9bn by 2029/30 https://obr.uk/efo/economic-and-fiscal-outlook-october-2024/#chapter-3 
3. https://www.gov.uk/government/statistics/inheritance-tax-liabilities-statistics/inheritance-tax-liabilities-statistics-commentary

NOTES FOR EDITORS

Press contacts

Jenette Greenwood, PR Director, the lang cat
07710 392303 / jenette@langcatfinancial.com  

Jenny Burt, Director of Marketing, EV
07557 681 080 / jennifer.burt@ev.uk  

About EV

EV is one of the UK’s market-leading digital financial planning solutions providers. We have operated as an independent organisation for over a decade, backed by a further 18 years of financial services consultative experience. We connect and empower our intermediary financial partners with intuitive, customer-centric advice, guidance software, and investment solutions.

We have a history of developing engaging tools that help financial advisers and their clients navigate the complexities of financial markets, ultimately delivering simplified financial planning and enabling clarity over investment options, cash flow forecasting and aligned client risk profiles.

Powered by our proprietary market-leading stochastic asset model, our powerful calculations and strategic multi-asset allocations are used globally across the financial ecosystem by financial advisers, pension and platform providers, asset managers, banks, and building societies, to name but a few.