A recent survey has found that the inheritance tax system is widely misunderstood by consumers.
The research was carried out among 400 homeowners by chartered accountants Grant Thornton. It revealed that 86 per cent of individuals want their main family home to be exempt from inheritance tax.
The study also found that, on the whole, the inheritance tax rules are not understood clearly by consumers. For example, two-thirds of those surveyed believed that inheritance tax would have to be paid on their estate when they died. In reality, though, figures from HMRC show that only three per cent of estates are expected to be subject to inheritance tax in 2012.
The survey quizzed homeowners about what they thought needed to change under the current inheritance tax system. The most popular idea for reform was to replace the current regime with so-called ‘green taxes’ to discourage homeowners from causing environmental damage.
Jonathan Griffin, a partner at Grant Thornton, told The Yorkshire Post, “We believe the time is ripe for reform of inheritance tax and this latest research demonstrates that there is general misunderstanding and dissatisfaction with the tax.”
He added, “We are calling on the Government to review the system and make changes so that it is simpler and fairer for future generations.”
