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Alliance & Leicester advises homeowners not to leave their property to the taxman

19 May 2005
With more and more people's property valued at greater than the tax-free threshold, Alliance & Leicester is advising homeowners to seek to advice to avoid leaving a significant proportion of the value to the taxman.

With the inheritance tax threshold currently set at £275,000, a large number of homeowners could be facing losing 40 per cent of the value of their property in tax - meaning less is left over for their loved ones.

According to Alliance & Leicester, almost three-quarters (74 per cent), of homeowners are eligible for the full inheritance tax levy.

"Inheritance tax has previously been considered a tax that only very wealthy people have to pay.

However, with the recent increases in house prices, more and more people will see the value of their estates creep over the tax-free threshold of £275,000," comments Sarah Ennion, product manager for investments at Alliance & Leicester.

The bank advises homeowners to seek professional advice to find out more about the best ways to avoid seeing almost half their property signed over to the taxman.

"There are many ways to reduce your IHT liability and ensure your loved ones don't have to pay a large chunk of their inheritance to the tax man," Ms Ennion explains.

"We would recommend a review with a Financial Advisor, which can help in several ways - a qualified advisor can help people calculate the value of their estate and establish if they have an IHT liability."

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