Almost two-thirds (65%) of people think raising the inheritance threshold from £325,000 to £1 million in the Autumn Statement is a good idea, new findings from YouGov reveal.
Over half (55%) believe that increasing the threshold would be easy for the government to do because “very few people will be affected”. However, although the research shows that just 2% have received an inheritance of more than £325,000 in the past, one in ten (10%) expect to do so in the future. This figure rises to 15% of Londoners, indicating that increasing property prices might be the driver behind larger expected inheritances.
YouGov’s findings suggest that among the group that anticipate receiving over £325,000, the vast majority (9%) would benefit from the mooted change in inheritance tax as they would receive under £1 million. Among this group, over four in five (82%) believe that increasing the threshold is a good idea and just 11% think it is a poor one and 71% think such a change will make a big difference when they inherit money in the future.
The data shows that support for the increase in inheritance tax is particularly strong among older people. More than seven in ten (72%) over-60s think changing the threshold is a good idea compared to just over half (53%) of 18-24 year-olds. Those aged 60+ are also most likely to think raising the threshold would be “easy to do as very few people will be affected”, with 61% agreeing compared to 40% of under-25s.
Despite the sizable proportion expecting an inheritance between £325,000 and £1 million, those standing to receive a windfall are evenly split about seeking professional guidance over the issue. Over four in ten (43%) would seek independent financial advice about an inheritance, the same proportion as those that would not (43%).
Jake Palenicek, Director of Financial Services Research at YouGov, says: ‘Increasing the inheritance tax threshold has popular headline appeal – some of it no doubt based on self-interest and some of it rooted in the hard-headed reality that £325,000 is not what it used to be. Although only two per cent of the public have previously received an inheritance over £325,000, this figure is set to quadruple as increasing house prices and inflation kick in.
‘However, despite a notable proportion of people expecting to receive a substantial windfall, relatively few have sought financial advice. The increased threshold would create expanded opportunities for independent financial advisors offering specialist consultation regarding estate management, investments of assets or leaving an inheritance. Whether changes in the tax boundaries lead to an increase in the numbers seeking such consultation is one of the most important issues for the sector.’
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