Prudential have carried out new research showing that financial advisers are forecasting a sharp rise in demand for Inheritance Tax advice. It was found that 7 out of 10 advisers interviewed expect demand for IHT planning to grow over the next 12 months. However 17% of advisers feel that due to regulatory changes, they are not sufficiently confident in advising on IHT issues and are looking to develop links with legal firms.
The study shows that part of the increase in demand for IHT is due to the new IHT rules that came into effect in April this year. These rules are complex and comprise an additional £100,000 per person residence nil-rate band. This limit will increase each year and complements the standard nil rate band to provide a potential £1million IHT allowance for a couple in 2020/21
Increased access to pension savings as a result of Pension Freedoms and the ability to leave pension wealth to family as well as rising property prices are other major factors.
Paul Harrison, Head of Business Consultancy at Prudential commented “Rising property and pension wealth are making it increasingly important for advisers to be able to help clients with specialist advice on IHT planning and demand for advice is booming.”
“One specialist area that is driving demand for IHT advice is enquiries about using trusts”
If you would like advice on inheritance tax planning then please contact a member of our Private Client Department who will be happy to help you. Please find out more at http://www.mitchells-roberton.co.uk