New research suggests that almost a third (30 per cent) of Britons aged 55 and over are confused about Inheritance Tax (IHT) due to the fact they do not fully understand key IHT terminology.
In a survey carried out by insurer Alan Boswell in June, half (44 per cent) of Britons quizzed said that they were unaware that IHT was levied at a rate of 40 per cent on eligible estates.
Meanwhile, more than a quarter (27 per cent) admitted that they did not know that all estates valued at £325,000 or more are liable to pay IHT at this rate if families have not sought specialist IHT planning advice in advance in order to mitigate their IHT liability.
Commentators have voiced concerns that more needs to be done to raise awareness of IHT, as an increasing number of British families are being hit with hefty IHT bills every single year.
Back in May, official figures published by HM Revenue & Customs (HMRC) revealed that the Treasury collected a record-braking £5.2 billion in IHT last year alone.
Most suspect that the increase is due to a combination of rising property prices and families’ failures to seek specialist tax planning advice.
Under the right guidance, there are a number of ways that individuals and families can mitigate their IHT liability. For example, anyone who wishes to pass property to direct beneficiaries in their Wills can make use of the additional residence nil rate band, which can enable individuals to pass on an extra £125,000 in property value completely free of IHT.
Rotherham Taylor can assist with IHT planning advice, but we are also one of a small number of accountancy practices in the UK to be licensed to provide probate services by the Institute of Chartered Accountants in England and Wales (ICAEW).
This means that our team can offer a wide range of probate services to clients, from obtaining a grant of probate, to identifying and distributing assets according to the terms of a Will.
Furthermore, our existing detailed knowledge of a client’s financial affairs means that we can act quickly and effectively on probate matters with consequent cost benefits.