According to a new survey by insurer Canada Life, three fifths of people who face a potential Inheritance Tax (IHT) bill fail to realise their estate may be liable.
More than half of those surveyed said they did not realise that IHT is charged at 40 per cent.
Receipts from IHT have hit a record high, the latest figures from HM Revenue & Customs show. Families paid £4.7 billion of IHT in the 2015/16 tax year, up 22 per cent on the previous year.
By not understanding the rules relating to IHT, where the current IHT threshold is £325,000 for a single person and twice that for a married couple, families could end up paying tens or even hundreds of thousands of pounds in tax.
Through careful planning, IHT can be mitigated. We do however recommend that planning starts are early as possible. Our Beavis Morgan tax experts are available to guide you and advise you on the available strategies.
If you would like to know more, please contact Barrie Dunning or your usual Beavis Morgan Partner.