Britons improve IHT planning, but still waste 1.3 billion
UK adults will waste a massive 1.3 billion through poor inheritance tax planning this year according to annual research* by unbiased.co.uk, the website promoting the benefits of independent financial advice. Although high, this figure represents nearly 300m less waste than last year, showing that we are improving how we plan for future Inheritance Tax liabilities. However, with house prices rising at a much faster rate than the IHT threshold, this improvement may only be temporary.
Unbiased.co.uk’s research is part of its annual campaign, TaxAction, which aims to encourage people to think sensibly about how to avoid wasting money through paying unnecessary tax. The most widespread cause of IHT 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. These errors are estimated by unbiased.co.uk as accounting for 119m in erroneous tax wastage.
However, far more tax waste results from a simple lack of inheritance tax planning within personal estates. This waste has been quantified at around 1,184m this year alone. The fastest way to tackle this waste is by searching for an independent financial adviser in your area who specialises in giving tax planning advice.
David Elms, Chief Executive of unbiased.co.uk, commented; “Our research shows that although people are improving their inheritance tax planning, they still have some way to go. Property prices have outstripped the IHT threshold over the last few years and inheritance tax is now a very real concern for most UK homeowners. It’s vital that people seek advice from an independent financial adviser, so they can make informed decisions when it comes to IHT planning.”
With this in mind, unbiased.co.uk has produced a brochure which explains what exactly Inheritance Tax is and how to minimise your liability. For a free copy of the brochure, together with details of specialist independent financial advisers (IFAs) who can advise on your IHT options, visit www.unbiased.co.uk/taketaxaction/ or call the unbiased.co.uk consumer hotline on 0800 085 3250.
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For further information please contact:
David Elms | Laura Wood/Jonathon Grove |
Chief Executive | Lansons Communications |
Unbiased.co.uk | 020 7294 3689 / 020 7294 3653 |
020 7833 3131 |
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*Tax Action 2006 report, RAKM for IFA Promotion
For expert comment or case studies from over 200 media-friendly IFAs, journalists should call unbiased.co.uk’s Media Services hotline on 020 7294 3682 or search online at www.unbiased.co.uk/media
1. Independent Financial Adviser Promotion
Unbiased.co.uk is the consumer brand of IFA Promotion, the organisation established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents around 9,000 firms of independent financial advisers across the UK, incorporating over 17,000 registered individuals. These individuals hold over 20,000 incremental qualifications which are each individually verified by the awarding body. IFA Promotion welcomes the prominent display of incremental qualifications and further developments into the credentials of independent financial advice.
IFA Promotion is sponsored by 32 leading financial institutions, and in the past 12 months, over 600,000 consumers and businesses used unbiased.co.uk to find local independent financial advice.
IFA Promotion believes Independent financial advice should be:
- Affordable. The option to take independent financial advice should be available, by right, to all- not just the wealthiest in society.
- Convenient. IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.
- Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.
2. Independent Financial Adviser Promotion’s sponsors
Aberdeen Asset Management | London Mortgage Company |
Abbey | Lincoln Financial Group |
AEGON Scottish Equitable Plc | Mortgage Express |
Alliance Trust | National Savings & Investments |
AXA Life | NatWest Business Banking |
Bright Grey | New Star Investment Funds |
BUPA Health Services | Norwich Union Life |
Canada Life Ltd | Prudential |
The Children’s Mutual | Scottish Life |
Clerical Medical Investment | Scottish Life International |
Defaqto | Scottish Widows Plc |
Friends Provident | Skandia UK Group |
GE Life | Standard Life Assurance Company |
GMAC Residential Funding | UnumProvident |
INVESCO Fund Managers Ltd | Webline Limited |
Legal & General | Zurich Intermediary Group |