A fascinating new trend that is set to start in the west of the country that is showing West Country couples trying to avoid inheritance tax bills of around £160,000 by getting married could see a legal wrangle in the future. Many people are viewing these actions as a shotgun-esque way of tying the knot that could see both of our offices of solicitors Plymouth and Exeter based being called upon for advice.
Figures are currently showing that families in the West of the country are paying around £295 million annually to the Exchequer in inheritance tax, this is the largest bill in the country outside London and the South East.
Although this may not affect many people meaning they need not worry, the increasing house prices mean that more and more families could find their legacy breaking the £325,000 cut-off point for the 40% tax aimed at the wealthy.
According to the set of new analysis of HMRC data those accountable for inheritance tax in the year 2010-2011 encountered an average bill of almost £166,000.
Hardly surprisingly those in London along with the South East faced the prevalent bills, an average of £234,000 and £174,000 respectively.
However it was the South West region that was next in line with 1,900 families giving an average of £155,300, that totals up to £295 million overall. In contrast, the average bills in Wales were £126,000 and £130,000 in the North East of England.
An alternative survey revealed that as many as eight out of ten people are not aware of ways to mitigate the bill, such as getting married and the seven-year-gift rule.
Need some advice? Get in touch today