A SURVEY has revealed that many consumers don’t understand the inheritance tax regime, according to business adviser Grant Thornton.
It also showed that 86 per cent of people surveyed wanted the main family home to be exempt from the tax.
Four hundred home owners across the UK were asked about their perception of the existing system and what they would like to change. It showed that the scope of inheritance tax (IHT) is widely misunderstood, with two thirds of respondents believing that IHT would need to be paid on their estate on death.
Only three per cent of estates are expected to be subject to IHT in this tax year, according to figures from HMRC.
“We believe the time is ripe for reform of inheritance tax and this latest research demonstrates that there is general misunderstanding and dissatisfaction with the tax,” said Jonathan Griffin, a partner at Grant Thornton in Yorkshire. “We are calling on the Government to review the system and make changes so that it is simpler and fairer for future generations.”
The most popular proposal given for an adjustment of IHT was to replace the current system with ‘green taxes’ which would discourage residents in the UK from damaging the environment.