Almost three-quarters of UK adults do not understand how IHT works

Flagged as a ‘family taboo’

Isabel Baxter
clock • 2 min read

Almost three-quarters of UK adults do not understand how inheritance tax (IHT) works, according to Schroders Personal Wealth (SPW).

Its Family and Finances report for 2025, which surveyed 1,000 UK adults, found that while 77% of respondents are familiar with the concept, 71% admitted they do not understand how it works or what their beneficiaries might have to pay. Meanwhile, more than 40% of people do not have a will in place, the most common reasons being lack of time or believing it is too early. The report also showed that 40% of people believe inheritance and estate planning is the "last great family taboo". While 41% of people recognise not discussing finance as a widespread issue, 34% rarely or never have f...

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

The 'stark' impact of tax and pensions changes on special needs families

The 'stark' impact of tax and pensions changes on special needs families

Among hardest hit by ‘poorly consulted’ reforms

Jen Frost
clock 27 October 2025 • 8 min read
Former BoE governor Lord King slams potential 'mansion tax' proposal – report

Former BoE governor Lord King slams potential 'mansion tax' proposal – report

The potential property tax ‘not a coherent tax strategy’

Isabel Baxter
clock 27 October 2025 • 2 min read
Chancellor urged to tackle IHT 'flaw' for infected blood scandal compensation payments

Chancellor urged to tackle IHT 'flaw' for infected blood scandal compensation payments

HMRC slammed for having ‘no level of urgency’

Jen Frost
clock 22 October 2025 • 4 min read