Tax planning news

Uproar over IHT double whammy

7 June, 2007

The Saga Populus panel, the largest research panel of over 50s in the UK, has revealed an overwhelming sentiment against inheritance tax, with over half of this age group calling for IHT to be scrapped altogether.

According to the study, 14 per cent of the ‘baby-boomer’ generation – those in their 50s – are alarmed about the potential bill they themselves will have to pay as beneficiaries of someone else’s estate, and also expressed concern over the amount of tax their beneficiaries have to pay.

This is in stark contrast to just 3 per cent of people aged over 65 who are worried about how much IHT they will have to pay as a beneficiary, many of whom are increasingly only concerned about the size of the bill that they are leaving their loved ones.

Andrew Goodsell, Chief Executive, Saga Group, said: “There is a belief that today’s baby boomers ‘have it easy’ financially, however they are all too aware of the double-edged IHT sword threatening to cut into not only their inheritance, but also that which they leave to their loved ones. This is a unique problem to people in their 50s as other generations will benefit from the Government’s forecasted increased thresholds.”

Saga Personal Finance recommends that those potentially facing an IHT double whammy seek independent financial advice to help minimise the effect on their estate.

In particular, baby boomers should consider IHT when drafting a Will and consider all options available to them, such as setting up a specialist trust or gifting money away within their own personal allowance.