Britons wasting 2.2 billion in inheritance tax
- UK tax payers waste more on IHT payments than any other tax
- Britons say the so called “death tax” is their fourth most resented tax
- However, four in five people (81%) have not taken any steps to reduce their overall tax payments
UK taxpayers are wasting billions of pounds due to poor IHT planning according to annual research* by Unbiased.co.uk, the professional advice website. The research shows 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 equaling 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. 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.
Unbiased.co.uk’s research also shows that IHT is the fourth most resented tax amongst the British public, beaten to the top spot by fuel duty, council tax and TV license fee. Despite this dislike, four in five people (81 per cent) in the UK admit to not having taken any steps over the last twelve months to reduce their tax burden**.
The easiest way to tackle the amount of money wasted on unnecessary tax payments 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 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. 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.”
* TaxAction 2009 report produced for IFA Promotion by RAKM, based on a specially commissioned analysis of HMRC and a range of other official data sources.
**Research conducted online by Opinium Research LLP among a sample of 2,020 UK adults between 11th and 13th February 2009. Data has been weighted to nationally representative criteria.
ENDS
For further information on Unbiased.co.uk, the professional advice website please contact:
| David Elms / Richard Winder | Anna Schirmer/Jennifer Comerford/ Anna Moulds |
| Unbiased.co.uk | Lansons Communications |
| 020 7833 3131 | 020 7294 3682 |
For expert comment or case studies from over 200 media-friendly IFAs, journalists should visit www.unbiased.co.uk/bluebook to search online or call Unbiased.co.uk’s Media Services hotline on 020 7294 3682.
Notes to Editors
Unbiased.co.uk, the professional advice website
Unbiased.co.ukis the free and confidential UK-wide search service matching consumers with the most appropriate local professional advisers for their needs. In 2008, Unbiased.co.uk fulfilled over half a million searches for local, professional advice.
The portal currently houses three professional advice searches: ‘find an IFA’, ‘find a mortgage adviser’, and ‘find a solicitor’. These searches enable consumers to find relevant professional advisers by postcode, area of specialism and payment method, amongst other options.
IFA Promotion, the organisation behind Unbiased.co.uk, is now in its 20th year, and was set up to promote the benefits of independent financial advice to the consumer.
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