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

Isabel Baxter
Author spotlight

Isabel Baxter

Senior Reporter at Professional Adviser

More on Tax planning

Pension reform and IHT: Why advisers are turning to EIS

Pension reform and IHT: Why advisers are turning to EIS

'As pensions lose some of their tax advantages, EIS is coming to the fore in estate planning conversations'

Moray Wright
clock 26 August 2025 • 4 min read
Making Tax Digital: What the scheme means for working Brits (and advisers)

Making Tax Digital: What the scheme means for working Brits (and advisers)

MTD initiative is aimed at modernising and simplifying the tax system

Arjun Kumar
clock 26 August 2025 • 4 min read
Pensions and IHT - is gifting the best option?

Pensions and IHT - is gifting the best option?

‘Advice will be more valuable than ever’

Lisa Webster
clock 22 August 2025 • 3 min read