INHERITANCE TAX (IHT) is being needlessly paid in some situations, with many Britons being hit with a hefty tax bill from HMRC, according to new research.
Inheritance tax is payable on the value of an estate of a person who has passed away, above a particular threshold. This IHT threshold is usually set at £325,000, although it can differ according to circumstance. Needless to say, Inheritance Tax is not particularly popular with Britons, some of whom have described the levy as a “death tax” in the past.
Some have even called for the levy to be scrapped, although there are also equal concerns the Chancellor Rishi Sunak could increase the tax due to COVID-19.
It is therefore likely many will be dismayed to note families are sometimes paying an unnecessary Inheritance Tax bill.
Analysis undertaken by Weatherbys Private Bank showed some Britons were paying more than actually required by failing to take action.
The bank showed a lack of action on ‘liquid wealth’ by those who are more well-off could mean a higher IHT bill in the long run.