David Smith, wealth management director at Bestinvest, explains: “These taxes, originally aimed at those with very substantial wealth, have progressively drawn in more and more people thanks to rising property prices, particularly in London and the south-east, so IHT is going to be problem for many people who are unlikely to regard themselves as wealthy at all.”
But in spite of having access to a range of tools that can go some way to mitigate the inheritance tax liability, recent research carried out on behalf of Investment Adviser revealed that advisers simply weren’t taking advantage of some of the more flexible, albeit risky, products.
Enterprise Investment Schemes, for example, were the first port of call for just 1.57 per cent of the respondents - a figure which came as a shock to the product providers.
In response to the increasing demand for tax mitigation strategies, Investment Adviser has asked two experts for their solutions to client situations.
Further reading