The latest figures showed income from IHT was up £1bn year-on-year.
Canada Life technical director Andrew Tully said: “IHT is no longer a tax only on the wealthiest estates. As these record figures show, IHT has now become a mainstream tax on ordinary people, largely due to house price increases.”
He added that people needed to put their finances in order to avoid the “tax man taking more than his fair share”.
“Only then can people be confident they are passing on their wealth to their beneficiaries as tax efficiently as possible.
“Simple things such as setting up a trust, making use of gift allowances, and using your pension to cascade wealth very tax efficiently, can all help manage the value of your estate for IHT purposes.”
Tully explained that the tax-free allowance is £325,000, so if a client suspected their estate might be worth more than this, it is worthwhile seeking expert financial advice.
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