This is money that could be funnelled into legitimate tax-saving schemes or gifted away tax-free, according to Weatherby’s Private Bank.
Married couples can pass on up to £1m tax-free, but many with personal wealth above this amount are voluntarily paying over the odds by failing to make the most of their “liquid wealth” and the tax breaks on offer. Estates worth more than £1m pay three-quarters of all death duties, a collective tax bill of more than £5bn a year.
It comes as thousands more people (30,400 –a 20% increase according to revised Government figures published alongside the Chancellor’s spending review) are expected to pay the 40% levy this year, after the pandemic caused excess deaths to surge.
Make the most of what you’ve made, and speak to us about any inheritance tax concerns – we can help you with your estate planning through:
- Special occasion gifts
- Small gifts
- Seven-year rule
- Unlimited gifts
- Charitable donations
- Insure against a big bill
- Do not use your pension
- Pay school fees via a discretionary trust
- Loan trusts
- Buy a farm
Adapted from two articles in the Telegraph Money section by Harry Brennan: ‘Thousands more to pay inheritance tax due to Covid-19 death toll’ & ‘Families pay £1.2bn in unnecessary inheritance tax’