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Poor IHT planning 'wastes £2bn a year'

UK adults are wasting a collective £2 billion every year by failing to plan for inheritance tax, a new survey shows.

According to research by financial advice website unbiased.co.uk, inheritance tax is the country's second biggest area of tax wastage.

And the amount thrown away unnecessarily could increase further, as the threshold for the tax has been frozen for the next four years.

Karen Barrett, chief executive of unbiased.co.uk, said one of the most important steps to take when planning for inheritance tax is to write a will.

"You can calculate your assets and plan who you would like to inherit your wealth - and how to do this in the most tax efficient manner," she explained.

The research showed that 31 per cent of UK adults expect taxes to rise after the general election, yet 86 per cent have done nothing to reduce their tax burden.

Meanwhile, research commissioned by children's charity Barnardo's has shown that almost 60 per cent of adults in the country do not yet have a will.

Posted by Christopher Evans

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Published on: April 29, 2010

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