Rise in number of people wanting IHT advice expected
9 August 2018
As inheritance tax receipts hit a record £5.2 billion for 2017-18, the number of people seeking advice for inheritance tax planning is set to rise.
More than three quarters (78%) of advisers expect the number of retail investors requiring help for IHT planning to increase over the next three years, according to new research from TIME Investments.
Two thirds of advisers expect to see the use of Business Relief rise over the coming three years as people look to reduce their IHT liabilities. To encourage more investors to support UK businesses, the government currently allows shares held in qualifying companies not listed on stock exchanges and some of those listed on AIM to qualify for Business Relief. After two years of ownership, the shares no longer count towards the individual’s taxable part of an inheritable estate and are therefore free from inheritance tax on death.
Three quarters of advisers surveyed by Time Investments said the increasing use of Power of Attorney due to rising dementia rates would contribute to the growth in the use of Business Relief and other flexible IHT solutions.
Six out of 10 (63%) advisers also predict a rise in the number of IHT products and solutions in the market. However, whilst this will offer investors more choice, the overwhelming majority (88%) of advisers said they were concerned that new products will be launched by firms that don’t have the right expertise or experience.
Henny Dovland, TIME Investments’ IHT expert, commented: “The number of families in the UK being caught in the IHT net is increasing. This represents a significant opportunity for advisers specialising in IHT and intergenerational planning and is reflected in our findings that reveal more specialist products are set to be launched in this market. However, care needs to be taken to ensure any new solutions are fit for purpose.”
Defined benefit (DB) transfers remain topical and the Financial Conduct Authority (FCA) continue to find problems in this market....
A recent decision by the FOS to uphold a complaint against Intrinsic Financial Planning highlights several issues with how...
ATEB Consulting’s Steve Bailey looks at what is expected when the latest rules on pensions transfers come in on...