Read on for ways to cut your inheritance tax liability now.

Inheritance tax, often referred to by British tax-payers as ’death tax’ is their fourth most resented tax, research from the professional financial advice website Unbiased.co.uk has revealed, but despite this resentment, four in five people (81%) have not taken any steps to reduce their overall tax payments.  

Poor Inheritance Tax Planning – How to Cut Your Inheritance Tax Bill

UK taxpayers are wasting billions of pounds due to poor planning, with the Unbiased.co.uk research showing that the overall amount of unnecessary inheritance tax payments will total £2.2 billion this year.  The amount of wasted IHT payments has risen by 16% per cent compared to 2008 equalling an increase of £314 million.
Lack of IHT provision represents the biggest tax wastage in the UK and despite the housing market being in crisis; this trend looks set to continue with many properties still valued at more than the current IHT nil rate threshold of £325,000.

’Our research shows that extraordinary sums are being lost from estates because the deceased has not made adequate provision for inheritance tax. This can prove an additional unwelcome stress for the deceased’s family at an already difficult time, since this tax must be paid before the estate is released and any inheritance can be passed on,” said David Elms, Chief Executive of Unbiased.co.uk.

“It is crucial that people see an independent financial adviser to discuss their tax liabilities. An IFA will ensure that all advice provided is appropriate for their client’s personal and family financial situation.’

Unbiased.co.uk’s research is part of its annual Tax Action campaign, which aims to encourage people to think sensibly about their tax liabilities and to take steps to avoid unnecessary tax payments. The research shows that one of the main causes of ‘death tax’ wastage is the inclusion in personal estates of the proceeds of life assurance policies, which if written in trust, would not be subject to inheritance tax.

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