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The Royal Borough of Windsor and Maidenhead is the area with the highest Inheritance Tax bills, according to a survey by Scottish Widows bank. The same survey showed that one in three homeowners in the south of England faces a potential Inheritance Tax bill. Now new Land Registry figures for the fourth quarter of 2005 show that, in spite of the usual seasonal fall, the average Maidenhead area house price is over £295,600, and the price of the average detached house in the area is almost £461,000. Asset protection specialist Michael Cutler, a partner with Colemans Solicitors, comments "If only because of the property values in this area, many local families are now facing a large Inheritance Tax bill. If a couple with typical family Wills have combined assets of more than £275,000 (including house, savings, and any insurance money, pension lump sum or death-in-service benefit due when the first of them dies), their heirs will have to pay 40% tax on everything over £275,000. The average detached house could now attract an Inheritance Tax charge of over £74,000 by itself and, on an estate of £550,000, there would be ‘death duty’ of £110,000!”
Asked about recent developments in this field, Michael Cutler explains “There has been a lot of publicity in recent months about changes to Inheritance Tax and, in particular, about the new Pre-owned Assets Tax. Much of what has been written on this subject is misleading, and some of it is simply wrong.” Michael Cutler reveals “It is still perfectly possible, and perfectly acceptable to the Revenue, for a couple to set up Wills and Trusts which can save at least £110,000 in Inheritance Tax, and often much more, depending upon their circumstances. If done properly, this can be achieved with minimal continuing administration and no continuing overheads. Of course, this must all be done carefully and correctly, as the Revenue looks at such arrangements very closely and attacks them where it can, and there are pitfalls which are largely unknown to those who do not specialize in this field.”

Solicitor Michael Cutler is a member of S.T.E.P. - the prestigious Society of Trust and Estate Practitioners - and he has been advising clients on Inheritance Tax mitigation and estate planning for more than 10 years. To contact him, call 01628 631051.