According to Money Helper, the public advisory service, trying to reduce how much IHT is due on an estate is complicated. But, in short, Britons can reduce how much tax is paid by leaving a legacy to charity.
Taxpayers can also put their assets into a trust for their heirs, leave their estate to a spouse or civil partner, pay into a pension instead of a savings account and/or regularly give away up to £3,000 a year in gifts.
Taking note of these options may prove to be especially important for Britons as recently released data from HMRC showed the Government is collecting record amounts from taxpayers.
In late-December, HMRCs latest tax receipt data showed the overall tax take for the state between April and November 2021 was £448.1billion, £106.8billion higher than the same period last year.