A report by Canada Life on inheritance tax has highlighted some shocking statistics that could leave UK families set to pay millions in unnecessary taxes.
- 51% of over 45s do not know that ISAs are liable for inheritance tax
- As a result, the government stands to earn millions from people who assume that ISAs can be inherited by their children, tax free
- 77% think the UK’s inheritance tax rules are too complicated
ISAs can only be gifted to a partner and not children without incurring tax. Ultimately the major beneficiary of the £585 billion currently residing in cash, stocks and shares ISAs will be The Government. In the last budget HM Treasury predicted it will raise £5.3bn in the 2017/18 tax year in inheritance tax, which will eventually increase to £6.5bn by 2022 to 2023.
The research also revealed 77% think the UK’s inheritance tax rules are too complicated. However, just 33% have sought professional advice on inheritance tax planning. Only 42% of those seeking advice spoke to a professional financial adviser, while more than one in ten conducted their own research via the Internet.
Early preparation is the key to success here. Taking advantage of legitimate and HMRC recognised methods to protect a valuable estate, often ensures that more wealth can be passed to your chosen beneficiaries.
Redwood Financial run a FREE seminar on this very subject, helping delegates understand the risks and opportunities associated with inheritance tax and how we can help you mitigate the potential impacts. Don’t delay, book today! Book online at: Book Me A Place! or call us on 01489877 547.
Read the full article on Canada Life’s report Click Here.