Inheritance tax burden ‘can be reduced’

Fresh calls have been made this week to educate the public about the financial risks associated with inheritance tax.

Investment adviser firm Edward Jones has warned that, with house prices continuing to rise, more and more people may unwittingly find their estate breaching the £300,000 threshold for the tax.

Brian Potter, a financial adviser and stockbroker at the firm, remarks: "It’s very easy for an estate to be worth a lot more than the current £300,000 inheritance tax threshold, with tax charged at 40 per cent on everything above this limit."

He added that making a will could help to resolve problems associated with passing on an estate, while the public should investigate their options to minimise the financial impact of inheritance tax should it be applicable.

Last week, Clerical Medical highlighted a number of actions which can alter the amount paid to the taxman, such as] the inclusion of a deed of variation and maximising exemptions and pension contributions.