More estates paying inheritance tax

According to a new report by deVere United Kingdom inheritance tax planning is now a top prioriy for individuals, together with retirement planning.

Despite the availability of a transferable nil rate band for married couples and Civil Partners, which can create a combined inheritance tax threshold of £650,000 before Inheritance Tax (IHT) becomes payable at 40%, since the Government announced that the threshold for an individual is now frozen at £325,000 until 2018, there is renewed focus on mitigating this potential liability to tax.

Although the original intention behind a tax on death was for high net worth individuals, changes in the economic situation in the UK have lead to an increase in house prices, especially with those owning properties in London and the South East. The report believes that this will drag an estimated one million more people into the IHT net over the next few years.

For further information please contact Elliot Lewis.