IHT change 'unknown by most people'

Nearly two-thirds of Britons are unaware of last year's major change to inheritance tax rules, according to the results of a survey. 

The newly published document from Zurich, the financial services provider, claims that 64% of people still do not know about the introduction of the transferable nil-rate band announced in October 2007 to allow couples to more easily pass on IHT-free wealth to their beneficiaries.

Last week, the company released figures that showed that three-quarters of the population do not know they are entitled to tax relief on pension contributions.

That data noted that young adults were the most ignorant — and so this is the case in the latest study: 71% of those aged between 35 and 44 are oblivious to the transferable nil-rate band. Nearly two thirds (65%) of those people 45 to 54 are also unaware.

Zurich has also suggested that Britons lack knowledge about ways in which potential IHT liability can be mitigated through effective long-term financial planning, with 83% of people unaware of the tax rules applying to the creation of trust funds, and a similar proportion ignorant about tax rules concerning giving away assets as gifts.

Categories: News , Inheritance Tax