UK families urged to seek out Inheritance Tax advice


A rising number of UK families are finding themselves liable to pay Inheritance Tax (IHT) due to a lack of appropriate estate planning, new research appears to suggest.

The research, which was carried out by insurer Drewberry, also found that the majority of people quizzed did not fully understand IHT.

In fact, 12 per cent of respondents said that they thought residential property was IHT-exempt, while a further ten per cent said that they thought ISAs were also free from IHT.

Both of these assumptions are actually incorrect, with both a person’s residential property value and the value of their savings and ISAs taken into account when IHT liability is assessed.

Due to this, an increasing number of Britons are finding themselves facing unexpected IHT bills, particularly due to today’s ever-rising property prices. In fact, the Treasury reportedly collected a record-breaking £4.7 billion in IHT during the last financial year.

In the UK, individuals are entitled to pass on up to £325,000 tax-free – with any assets above this threshold or ‘nil rate band’ then taxed at a rate of 40 per cent.

Fortunately, new rules phased in last April can allow those who wish to pass their property to direct lineal descendants to pass on an additional £100,000 in property value tax-free.

However, the new rules, which are known as the additional residence nil rate band (RNRB), are complex and confusing and specialist advice must be sought from a solicitor in order to correctly assess your circumstances and include the appropriate provisions in your Will.

Carter Lemon Camerons LLP Solicitors is a City law firm which provides Wills and Probate services with a personal touch to its clients – that go beyond the simple drafting of documents. Unlike many City practices we are happy to act in smaller private legal matters, bringing the same care and consideration as we do to large commercial matters. If you require advice on Wills, please contact Neil Acheson-Gray, Ian West or Michael Woodward.

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Information for Editors
Carter Lemon Camerons LLP (CLC) solicitors is a City law firm which provides legal services with a personal touch to both commercial and private clients. Unlike many City practices we are happy to act in smaller private legal matters, bringing the same care and consideration as we do to large commercial matters. For more information about CLC please visit: www.cartercamerons.com or telephone: 020 7406 1000