Yorkshire Building Society urges people to keep it in the family

Yorkshire Building Society has launched a campaign to raise awareness of how ordinary people are getting caught by a tax that was once considered the tax of the rich – Inheritance Tax (IHT). The ‘Keep it in the Family’ campaign, which runs until 10th September, aims to highlight the many different, legitimate, ways individuals can either reduce their Inheritance Tax bill or avoid it all together.

The recent spiralling of property prices, and the Government’s refusal to reflect this in the thresholds used to calculate Inheritance Tax, is the main reason why more and more people will be faced with a huge tax bill after their loved ones die. Inheritance Tax is paid at the higher rate of 40% on everything in the estate valued over the £300,000 threshold, even for basic rate taxpayers. Those who believe that their family home is below the current threshold might be surprised to know that other items such as savings, cars, furniture and properties owned abroad, will all be included in the value of the estate.

Without planning, a person leaving an estate valued at £450,000 would leave their heirs with a whopping £60,000 tax bill. This often means the family home has to be sold to cover the tax liability, and in some cases, if the house sale takes more than six months from the time of death, alternative means for paying the tax have to be found.

Tanya Jackson said: “Without planning for Inheritance Tax liability many people are unsuspectingly treating the Taxman as an extra child. When the money is divided between loved ones and offspring, the Taxman will be there to get his share.

“The purpose of our campaign is to flag up to individuals that they may be caught in this net that was once used to catch only the very wealthy, but with some planning they can leave their nest egg to loved ones and not the taxman. “

Yorkshire Building Society, in partnership with Legal & General, is offering advice to anyone who would like to know more about the implications of Inheritance Tax and find ways of giving more to their family. There are number of free seminars arranged across the country where options for reducing IHT will be discussed, or individuals can make an appointment at any Yorkshire Building Society branch for a more personal discussion. Anyone who wants to find out more about Yorkshire’s free IHT advice and seminars should call 0845 1200 100 or visit the website – ybs.co.uk.