New research has revealed a shocking lack of awareness of Inheritance Tax (IHT) rules across the UK, after almost a quarter of homeowners told a survey that they did not know that their main property was liable for the so-called ‘death tax’.
Research from insurance company Canada Life has revealed that more than half of British adults are unaware that IHT is levied at a rate of 40 per cent in the UK.
Worse still, almost a quarter (24 per cent) of adults told Canada Life that they did not know that their main home was liable for IHT – while 42 per cent wrongly believed that ISAs were also free from the ‘death tax’.
A further 28 per cent were surprised to learn that IHT was payable on cash savings and investments.
The insurer’s study also found that just shy of 60 per cent of adults were unaware that the individual IHT threshold per person in the UK, before the tax is due, is £325,000.
The research suggests a serious lack of understanding of IHT rules – and highlights the importance of seeking specialist legal advice for an in-depth analysis of your circumstances and IHT obligations, to ensure that you will leave behind a legacy for your loved ones.
Earlier this year, data from the Office of National Statistics (ONS) revealed that the Treasury reeled in £4.6billion in IHT in the 2015/16 tax year alone.