Inheritance tax awareness campaign launched

A scheme to raise awareness about how all consumers can be affected by Inheritance Tax (IHT) has been launched by Yorkshire Building Society.

The Keep it in the Family campaign aims to highlight the numerous lawful means by which individuals can reduce their IHT bill, or avoid it altogether.

IHT is paid at 40 per cent on everything left in a deceased individual’s estate valued over the £300,000 threshold.

Yorkshire Building Society advises that those who believe their family home to be below the threshold should be aware that other assets owned abroad will also be included in the value of an estate.

Spokesperson for Yorkshire Building Society Tanya Jackson said: "Without planning for IHT 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."

Ms Jackson added that consumers should not view IHT as something that only affects wealthier individuals.

In his last budget as chancellor, Gordon Brown announced that the IHT threshold will rise to £350,000 by 2010.