New research has revealed that UK taxpayers are set to waste as much as £4.7 billion this year in unnecessary tax payments.
The 2014 unbiased.co.uk Tax Action research shows Brits are set to gift a massive £100 million more to the taxman, compared to 2013, by not making the most of tax reliefs available to them or by not using tax-efficient savings products.
One area identified by the research as a source of tax inefficiency is inheritance tax (IHT), where individuals are apparently wasting around £530 million by not placing life protection policies ‘under trust’.
Unbiased.co.uk highlights that not placing a life insurance policy under trust could reduce a £100,000 pay-out by as much as £40,000, if an individual’s total estate is worth more than £325,000.
The research also found that only 27% of respondents said they would be confident in tackling IHT planning without the help of a professional adviser.