Funding IHT: Protection v investment solutions

Finding a substantial chunk of money to settle an inheritance tax (IHT) bill looks set to become a growing and unwelcome problem for ‘middle Britain’ families. Often viewed as an issue for the upper crust elite, a combination of factors may well result in it becoming a stealth tax on the estates that many more ‘ordinary’ people have worked hard to build over a lifetime. The government announced in the 2010 Budget that the £325,000 nil rate band for IHT is to be kept frozen until 2017/2018. At the same time, the Bank of England has laid out its forward guidance on interest rates; th...