UK inheritance tax law may change

The UK government may alter the inheritance tax rules to stop people who try to avoid paying it. In their proposals those suspected will be made to pay before they die.

This new plan will attempt to solve the problem of people channelling their money through trusts and similar means to get out of paying. Above £325,000 (around €407,324), people must pay 40 per cent to the government.

However, some people are worried that it might affect those who have no intention of tricking the system and scare some people, but HMRC have said that it will only affect a small percentage of rich people who follow illegal practices concerning inheritance tax.

David Cameron tried to raise the threshold to a million but was prevented by opposition from the Liberal Democrats. The proposals are still at an early stage and it remains to be seen if any alterations are made.