Britons are paying unnecessary £448m in IHT tax

Nicola Brittain
clock •

Placing life insurance policies ‘under trust' could save Britons £448m in inheritance tax, according to a new report.

Putting assets ‘under trust' effectively removes assets from the estate, and means the money will not be subject to inheritance tax. The Tax Action Report from Unbiased indicates that nine out of ten (85%) Brits have taken no action in the last year to reduce the amount of inheritance tax their estate could be liable for. In addition, 27% claim they do not know how to go about being more tax efficient. For an estate worth £325,000, not placing life insurance policies under trust will reduce a £100,000 life insurance payout by as much as £40,000. Karen Barrett chief executive of ...

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 Tax Planning

More than half of UK wants inheritance tax scrapped

More than half of UK wants inheritance tax scrapped

YouGov poll

Patrick Brusnahan
clock 05 October 2026 • 1 min read
A 'mainstream' planning issue: IHT receipts hit £3.2bn

A 'mainstream' planning issue: IHT receipts hit £3.2bn

Up by £100m on last year

Isabel Baxter
clock 21 August 2026 • 4 min read
Transact launches flexible reversionary trust ahead of 2027 IHT changes

Transact launches flexible reversionary trust ahead of 2027 IHT changes

Strengthening onshore and offshore bond offering

Isabel Baxter
clock 11 June 2026 • 2 min read