Mortgage and homes news
Homeowners told: seek advice on avoiding inheritance tax
25 September, 2007
Homeowners should seek advice on how to avoid paying inheritance tax (IHT) if they do not want their assets to be depleted at the time of their death, solicitor-run independent financial advice firm Blackadders has said
Keith Thomas, director of investment services at the firm, said: "If people do have an excess of £300,000 [the threshold at which IHT is charged] then they should think about gifting."
He explained that gifting was where income not spent was simply given to family or friends rather than ending up in savings, thus avoiding tax. by actions such as giving gifts of up to £250 to family members.
In addition to this, Thomas advised, those with up to £600,000 in their estate can change their wills to give over half away, thus avoiding the tax.
The current level of IHT was set by then chancellor Gordon Brown a year ago, with a plan to raise it up to £350,000 by 2010.
With current average house prices in London at £313,212, according to the Halifax House Price Index, owner-occupiers in the capital face having to pay the tax on their property if they die.
© Adfero Ltd
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