Ever more caught in the inheritance tax net

iht planning

Inheritance tax has historically been seen as a problem only for the rich but the rise in house prices over the past few years means more and more people will have to take it into account to protect their children's legacy

Individuals who are otherwise financially aware often fail to look at estate planning. Given that the overall yield from IHT in 2002-3 was less than 2% of the total tax yield for the year, at only £2.4bn, it is not surprising IHT is perceived as a tax only for the rich. However, it seems likely that more and more estates will fall into the tax net in the future, partly because of rising house prices and difficulty in planning with this asset. It is also possible the Inland Revenue will clamp down increasingly on IHT avoidance activities. Planning opportunities should therefore not be over...