According to the Institute for Fiscal Studies, one in ten will soon be paying inheritance tax (IHT). This means that there will be less in the pot to pass to your loved ones.
Although there was a decline in numbers of people paying IHT after the government’s 2007 introduction of the transferable nil rate band*, house prices seem to be on the rise again meaning that more of you will be caught in the inheritance tax trap. Furthermore, the amount that you can leave to your loved ones ‘tax free’ before your estate has to pay IHT has remained the same for years.
It is estimated that by 2018-19, the government will be taking a staggering 8 billion pounds in inheritance tax.
You need to act now to make sure that your assets pass in accordance with your wishes.
*Inheritance Tax Act (‘IHTA’) 1984 ss 8A–8C, inserted by Finance Act 2008 s 10, Sch 4 paras 1, 2.