Inheritance tax will hit many hard

saverInheritance tax (IHT) is the most reviled tax of all, and it is easy to see why, because it can take a fat chunk of your family wealth at a single swoop.

A single person with £1 million in assets could be liable to a £270,000 tax bill on death.

There is plenty you can do to reduce your family’s IHT bill.

You can gift as much as like out of your regular disposable income, provided you still have enough to live on, says Craig Palfrey of Penguin Tax Planning. “Somebody on an annual income of £50,000 who spends £40,000 could give away £10,000 each year, and their children will escape IHT on this too.”

 

You can read the rest of the article on Money Market UK here: http://www.money-marketuk.com/Consumer/3690-inheritance-tax-will-hit-many-hard.html

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