Yorkshire Building Society has launched a new campaign; ‘Keep It in the Family’, which aims to raise awareness of how anyone can get caught put by Inheritance Tax (IHT).
Once considered a ‘tax of the rich’, IHT is now affecting more and more people, and Yorkshire Building Society is trying to help people understand how their can reduce the amount of IHT they pay, or in some cases, reduce it altogether.
“Without planning for Inheritance Tax liability many people are unsuspectingly treating the Taxman as an extra child. When the money is divided between loved ones and offspring, the Taxman will be there to get his share,” explained Yorkshire Building Society spokesman Tanya Jackson.
“The purpose of our campaign is to flag up to individuals that they may be caught in this net that was once used to catch only the very wealthy, but with some planning they can leave their nest egg to loved ones and not the taxman. “
The recent rise in property prices - this month marks the 21st month in a row to see a rise in house prices according to the Royal Institution of Chartered Surveyors - combined with the fact that the Government is not reflecting the rises on the IHT threshold, which remains at £300,000, has resulted in a huge increase in the number of people faced with a bill following the death of a loved one.
With the IHT rate of 40% on everything worth more than £300,000, someone leaving an estate worth £450,000 would leave a bill of £60,000 behind for their inheritors. And with cars and furniture often included as part of the value of the estate – homes worth less than £300,000 often go over the threshold because of the value of other goods.
Ms Jackson continued: “Without planning for Inheritance Tax liability many people are unsuspectingly treating the Taxman as an extra child.
“When the money is divided between loved ones and offspring, the Taxman will be there to get his share,” she said.
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