Recent research has shone a light on a significant gap in knowledge concerning Inheritance Tax (IHT) among retirees over the age of 55. The study, entitled “2023 Countdown to Retirement”, was carried out by Just Group and found that many retirees are unaware of the current IHT threshold.
Out of those surveyed, 51% admitted they were uncertain about the estate value threshold at which IHT becomes payable. Additionally, 8% of participants expressed doubts, indicating that they weren’t entirely sure about the threshold either.
Furthermore, the study also revealed that half of the retirees surveyed (50%) lacked clarity regarding the rules surrounding IHT. They also weren’t aware of the specific amount that can be inherited without being subjected to tax. This finding is particularly crucial given the recent announcement from HMRC, in which they have adjusted their projections to account for an increase in the number of estates expected to be hit by Inheritance Tax.
Stephen Lowe, the group communications director at retirement specialist Just Group, highlighted the implications of these findings. He said: “The combination of escalating property prices coupled with stagnant tax thresholds has created a situation where an increasing number of families find themselves ensnared by the Inheritance Tax net.”
