Jan 23 2007
Britons concerned about being liable for inheritance tax (IHT) are planning on giving away around £103 billion to family and friends to avoid paying their savings to the taxman.
Recently published research from Scottish Widows reveals that 41 per cent of households in the UK have an estate liable for IHT, with 43 per cent of these people having taken or planning to take steps to reduce their bill.
Anne Young, tax expert at the firm, said: "IHT is a tax that affects almost half of the country and it is really important that people prepare for the possibility of leaving a huge tax bill on their death."
She added that gifting money is an increasingly recognised means of reducing an IHT bill, but warned that not all gifts are exempt from tax.
Last month, Halifax reported that revenue from IHT had "soared" as a result of the government failing to link the tax to rising house prices.
