Wasted IHT payments approach £2bn - study

clock

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 am...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Tyndall Partnerships head Sullivan on bespoke empowerment

Tyndall Partnerships head Sullivan on bespoke empowerment

‘No two IFAs invest in the same suite of models’

Isabel Baxter
clock 09 December 2024 • 4 min read
Smoothed funds set to be a 'bigger asset class for the advice market'

Smoothed funds set to be a 'bigger asset class for the advice market'

‘An attractive low-risk solution for retirees’

Isabel Baxter
clock 25 November 2024 • 3 min read
Advisers no longer see inflation as a major concern

Advisers no longer see inflation as a major concern

Funds offering a level of inflation protection were the last research, Square Mile finds

Isabel Baxter
clock 22 October 2024 • 4 min read