A recent survey has revealed that only 8 per cent of Britons are aware that ISA savings form part of a person’s ‘taxable estate’ under inheritance tax laws.
The worrying study published late month shed light upon a surprising lack of awareness and understanding of inheritance tax rules amongst the British public.
Just 8 per cent of those questioned said that they were aware ISA savings were subject to inheritance tax, while only 14 per cent of those surveyed said that they were aware that the current inheritance tax-free allowance sits at £325,000.
Furthermore, 29 per cent of British homeowners aged 70-plus said that they had never considered estate planning or researched ways to eliminate inheritance tax bills they might leave behind to unsuspecting relatives.
In recent weeks, HMRC has announced a record-breaking £4.5 billion inheritance tax take for the 2015-16 tax year, and The Treasury estimates that annual inheritance tax receipts will top £5.6bn by 2021.
With inheritance tax hitting families harder than ever before, Britons are being urged to do their research, seek relevant advice and avoid walking into a potential trap.