Half of IHT outlay is unnecessary, financing website claims

Fri, 02 Mar 2007

Almost half of the money paid out in inheritance tax (IHT) last year was unnecessary, it has been claimed, in news that may be of interest to personal loan customers.

According to figures from financing website unbiased.co.uk, approximately 43 per cent of money paid out to the government in death taxes in the 2006-07 financial year could have been avoided if people had taken professional advice beforehand.

Moreover, the financing specialist suggests that the problem could be set to increase this year.

Its figures suggest that the amount paid in IHT is likely to grow 16 per cent during the next financial year to reach a new total of £1.5 billion.

"Despite plenty of attention being given to IHT in the past year, people are still not taking the necessary steps to protect themselves and their relatives from paying huge sums in IHT," remarked David Elms, chief executive of unbiased.co.uk.

Following an unexpectedly high IHT bill, people may find themselves needing to arrange a personal loan to cover the shortfall.

Typically, they can choose between either an unsecured loan or a secured loan - the latter generally offers lower lending rates.

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