Talking to clients and prospective clients I feel that there are more myths, misconceptions and stories from 'the bloke down the pub' surrounding Inheritance Tax than any of the other taxes.
Believing these myths could not only result in a large unexpected Inheritance Tax bill (as in the recent cases of Rik Mayall and Roger Lloyd-Pack) but may also mean your estate passes to people who you would not want to benefit or you could miss out on tax planning opportunities (which are available to everyone, not just the super-rich).
It is important to take professional advice, before taking any action (as it could be then too late), to make sure your estate is left to the people who you would want to benefit.
Do you know what will happen to your estate when you are gone?
To some, inheritance tax (IHT) is the most hated tax in Britain. To others, it is an engine of social fairness and wealth distribution. And to George Osborne it is a political weapon of astonishing power. The chancellor’s pledge in 2007 to raise the IHT threshold to £1m arguably changed recent political history by scaring the then prime minister Gordon Brown into postponing an election that Labour might have won. In his emergency budget in July 2015 Osborne finally delivered on that pledge, and made the tax even more complex in the process. IHT isn’t just politically controversial, it is also widely misunderstood and the subject of a number of myths.