Thinking ahead...

Individuals who are otherwise financially aware often fail to look at estate planning. Given that the overall yield from inheritance tax (IHT) in 2002 to 2003 was less than 2% of the total tax yield for the year at only £2,356bn it is not surprising that IHT is perceived as a tax only for the rich. However, it seems likely that more and more estates will fall into the tax net in the future, partly because of rising house prices and the difficulty in planning with this asset. It is also possible that the Inland Revenue increasingly will clamp down on IHT avoidance activities. Planning oppor...