Survey Shows That Britons Are Unaware Of IHT Implications

by Carla Johnson, Investors Offshore.com

10 March 2005

According to a survey conducted recently by Barclays Financial Planning and published on Tuesday, almost three quarters of Britons are unaware of the threshold for inheritance tax (IHT) in the United Kingdom.

Barclays revealed that 73% of those questioned were unable to correctly identify the current IHT threshold, with over 50% not aware that the current IHT threshold is £263,000, and a further 23% thinking that they knew, but giving an incorrect figure.

Barclays' research also revealed that more than half of those polled do not think that the IHT threshold is ever likely to impact them. Even amongst those with assets of more than £50,000 or a house worth more than £100,000, only 50% expressed the belief that they would ever be affected by IHT.

Steven Ingledew, the director of Barclays Financial Planning, explained that:

“Unfortunately the term ‘Inheritance Tax’ still suffers from the misleading image that it is a minority tax on the rich and as such many people remain unaware it could impact them and their families. Mainly due to increased house prices, there are three times as many people now affected by IHT threshold than there were in 1999. It is essential that more is done to help those affected to reduce the impact."

He went on to suggest that the 2005 Budget, set to be delivered on March 16, provides the government with an opportunity to address the situation.

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