Families in South West London, Kingston-upon-Thames and Guildford, along with Brighton on the South Coast, have been named as living in the inheritance capitals of the UK after recent statistics show that inhabitants from the areas paid more Inheritance Tax than anywhere else in the nation. The freedom of information request, made by Direct Line Insurance, highlights how many families in our area are leaving themselves exposed to a tax that many experts consider as avoidable if the right planning is put in place. HMRC expect IHT income to rise to £5.6bn by 2021.
“Your estate will owe tax at 40% on anything above the £325,000 inheritance tax threshold when you die (or 36% if you leave at least 10% to a charity) – excluding the ‘main residence’ allowance. Dealing with IHT is one of the biggest single MoneySaving things you can do, as some simple actions can save you £100,000s. Yet sadly many people ignore it, either not wanting to consider the future or simply unable to broach it with relatives for fear of seeming grasping.”
Estate Planning should be something we all consider, alongside ensuring adequate Pension provisions and writing a Will, and here at The Financial Planning Group, we believe that Inheritance Tax should be considered as a voluntary tax rather than an unavoidable one – by taking advice and undertaking simple, but timely, planning, we can certainly reduce and even negate all your potential inheritance tax liabilities.
But worryingly, too many people seem unaware or reluctant to take action, and research shows that rather than being a nation of Inheritance Tax savvy individuals, a whole generation has been described as “collectively sleepwalking into leaving our loved ones with a large and unnecessary tax bill to pay.”
Here at The Financial Planning Group our aim is to change the fundamental relationship people have with their money, and to give them confidence and clarity in their own futures – including making the right provisions for family financial wellbeing when, sadly, they are no longer here.
If would like to discuss your IHT situation, then please call Alan or Tim at The Financial Planning Group on 0800 731 7614 and we can arrange a meeting at our offices in the heart of Teddington.