Charles Stanley’s research found that many consumers misunderstand key aspects of inheritance tax (IHT), particularly how to calculate their liability.
While 80% claimed to understand how IHT works, nearly half (48%) did not know how much would be due on their estate, and many significantly overestimated the amount.
For example, 42% of those with estates worth £100,000 wrongly believed IHT would be payable, estimating a mean tax bill of over £35,000. Among those with estates valued between £100,000 and £325,000, 55% expected to owe IHT, with an average estimate of £48,000.
Even individuals with a genuine liability misjudged their bills. Nearly half (48%) of those with estates between £325,001 and £750,000 had no idea of their tax due, estimating an average of £56,000.