Almost 90 percent of people are ignorant of the threshold for inheritance tax (IHT), with one in three homeowners not having thought of planning for it (Inheritance Tax).
In February, a survey by Octopus of 2,000 UK adults found that only 14 per cent of people and 18 per cent of over 70s know the current IHT threshold, while just 8 per cent of people, and 6 percent of those over 60, are aware that ISA savings are subject to a 40 per cent IHT charge on death.
The company claimed people could be sleepwalking into leaving an IHT bill for their loved ones.
The finding came following Government forecasts that the tax take from IHT receipts will increase from 3.8bn last year to £5.6bn in 2020-2021, despite the phasing in of the new IHT free allowance for property of £175,000 per person introduced last summer.
Simon Rogerson, Chief Executive of Octopus Investments said: “ Our latest research shows just how vital it is to be aware of the key rules and regulations around tax planning so you can make your money work harder for you and help look after those you love when you are gone”.
Since 2013, when the Government announced that shares listed on Alternative Investment Market (AIM) could possible to invest into an IHT-free ISA by holding AIM shares listed that qualify for Business Property Relief, Octopus stated.
Caroline Garnham, Chief executive of a family office, said people “really are clueless” about IHT.
She added: “It is tax which is most disliked, from our questions with clients, and not enough people are talking about it or doing it, or thinking death may be round the corner.
“There’s not enough planning for IHT ahead of death, and sleepwalking into it is exactly what they’re doing. There has to be more awareness.
Inheritance Tax and Financial Advice Bristol
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About Us: Churchill Wealth Management is a team of independent financial advisors/financial advisers (IFAs) based in Clifton, Bristol. We provide independent financial advice, including pension advice, investment advice, inheritance tax planning and protection/insurance advice.