Over 60's at risk from complex IHT

Over-60s at risk of complex IHT rulesA HMRC report published last week indicates that more than a million over-60s are at risk of falling into the inheritance tax net but 54% of those have little understanding of IHT rules. NFU Mutual's Sean McCann said IHT rules were “fiendishly complex, feared by many and understood by few”, and that this lack of knowledge could lead to needless tax bills running into the tens of thousands of pounds. Elsewhere, investment platform AJ Bell says almost half of people who gift money are unaware of inheritance tax rules that could see their estate taxed at 40% if they die within three years. Up to £3,000 can be given away each year tax-free, but 12% of people over the age of 70 are handing out gifts of £20,000 or more. Tax is not paid on larger gifts if you survive for longer than seven years, but just 45% say they understood these rules.