Research carried out by Canada Life has suggested that a significant amount of individuals ‘do not know the threshold’ for the standard inheritance tax (IHT) nil-rate band.
Canada Life found that 70% of those surveyed did not know the standard nil-rate band threshold, which currently sits at £325,000.
55% of those questioned do not know the rate at which assets above their available nil-rate band are taxed, the data also revealed.
Meanwhile, an additional 38% do not believe that their main home is liable for IHT.
Canada Life has warned that many families in the UK could face ‘unexpectedly high’ tax bills as a result.
‘There is a disturbing lack of knowledge which will undoubtedly translate into unnecessarily high inheritance tax bills,’ said Karen Stacey, Head of Distribution Services at Canada Life.
‘Unless people learn more about taxes and actively plan the future of their estate, the government is in line for a large, ongoing and often unnecessary windfall.’
We can help you to plan to minimise the IHT due on your estate – please contact us for further advice.