Almost two billion pounds more will be paid in tax this year than need have been paid due to poor inheritance tax planning by the vast majority of UK taxpayers, an annual report by Unbiased.co.uk has found.

Lack of inheritance tax (IHT) provision represents the second biggest tax wastage in the UK, according to Unbiased.co.uk’s Tax Action Report, and this figure could increase following this year's Budget announcement that the IHT threshold will be frozen for the next four years at £325,000.

The Conservative’s have  pledged to increase the IHT threshold to £1m and  although left of centre politicians have argued that this would mainly benefit the the upper and middle classes the policy does reflect a widely held belief that inheritance tax is an unfair tax since it taxes assets that for the most part have already been taxed during the deceased’s lifetime.

Karen Barrett, Chief Executive of Unbiased.co.uk commented that  “As well as having your tax affairs organised, it is also crucial you have a valid will in place to ensure your legacy does not involve just leaving a large inheritance tax bill for your loved ones.”  At Seddons we are fully in agreement with that  statement and welcome the opportunity to assist our clients in avoiding an unnecessarily large inheritance tax  bill.