Poor inheritance tax planning will cost UK £1billion

Research carried out by Unbiased.co.uk has predicted that UK taxpayers will waste approximately £1.3billion in inheritance tax this year as a result of poor tax planning.

Behind tax credits, inheritance tax is the second largest area of tax where money that could otherwise have been saved through planning, is paid to the HMRC unnecessarily. Even more money is likely to be wasted in inheritance tax as a result of Chancellor Osborne's announcement last year that the threshold would not keep pace with inflation, but would instead remain frozen at £325,000.

Chief Executive of unbiased.co.uk, Karen Barrett, said that "vast sums are being paid unnecessarily in inheritance tax every year because the deceased had not made adequate provision". She also commented on the "additional unwelcome stress for the deceased's family .. as the tax must be paid before the estate can be released and any inheritances can be passed on." Families often find themselves having to take out a loan or use their own savings in order to access a deceased family member's estate to divide their assets.

Adults in the UK are advised to first make sure they make a Will, to update it from time to time or upon a significant change in their assets, and to seek specialist tax planning advice.

If you live in Northern Ireland and would like to receive free information on making a Will, or speak to someone about inheritance tax planning, contact Wilson Nesbitt solicitors in Belfast or Bangor by emailing estates@wilson-nesbitt.com .

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