UK taxpayers waste more on Inheritance Tax (IHT) payments than any other duty as a result of poor financial planning, research suggests.
According to a study conducted by Unbiased, a total of £1.9bn was spent "unnecessarily" on IHT last year, a jump of £370m on 2007.
It says a lack of IHT provision "represents the biggest tax wastage in the UK" and predicts further gloom as more properties exceed the £312,000 IHT nil rate threshold.
"People are throwing away a whopping amount of money on unnecessary inheritance tax payments," Unbiased chief executive David Elms says.
"IHT liability is paid by beneficiaries, often at a time when they are grieving over the loss of a loved one. Without advanced tax planning, increasing amounts of IHT will fall into the hands of the tax man."
Elms says it is "crucial" consumers visit an IFA to discuss their tax liabilities adding it is important they remember it is legal to mitigate IHT.
Meanwhile, Unbiased says its research also shows IHT is the fourth most resented tax amongst the British public, beaten only to the top spot by fuel duty, council tax and the TV license fee.
Despite this, it says four in five people (82%) in the UK admit to not having taken any steps over the last twelve months to reduce their tax burden.
Contact: Scott Sinclair, News Editor, 020 7484 9791 - [email protected]IFAonline
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First mentioned in Cridland Report
Second acquisition of 2019