Many people have worked hard to build up assets to secure financial peace of mind and eventually to pass wealth on to their families. Having already paid tax on these assets it may seem unfair that their families are then taxed again on the accumulated assets on death. Nevertheless this "double" taxation exists and there is no guarantee that the current regulations will not be tightened and tax rates increased. Recently there has been widespread comment on the proposals of a Government think tank to increase the rate of Inheritance Tax on larger estates to 50pc from the current 40pc. Peter Legg, director of Vantis Tax, which has an office in Queen's Square, Middlesbrough, said: "Inheritance Tax can have disastrous consequences for families and lead to a very substantial part of a person's estate being paid to the Inland Revenue. "An unwelcome IHT bill could necessitate the sale of assets, which a person's family would prefer to maintain. "The tax could have a particularly devastating effect if the assets cannot be sold quickly as substantial borrowing might be needed (to cover the IHT bill) and these borrowings may be difficult to repay." He added: "The Government's current annual yield from Inheritance Tax is in the order of £3bn. "Although historically only 5pc of people pay this, with the rise in UK property values this statistic is likely to change in the future. "The threshold at which the tax becomes payable is currently £263,000. "Given that it is paid by a significant minority, Inheritance Tax remains an attractive way of raising revenue for the Government - an issue that can and should be addressed through effective and sensible planning strategies." These strategies could include: * maximising reliefs and exemptions to minimise the ultimate liability. * using trusts to retain a degree of control, while removing the assets from your estate. * tax effective and flexible wills. * moving ownership of assets around the family for greater tax efficiency. * tax planning arrangements in connection with the family home. * tax planning and the family business. * Vantis is holding a free seminar about the impact of Inheritance Tax at Middlesbrough Football Club on September 14. To reserve a place contact Jemma Taylor on 01642 221331. | 
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