Tax advice of the week: Offset your mortgage against inheritance tax

A growing number of homeowners believe they have found a clever way of avoiding inheritance tax - keeping their mortgage in the hope of offsetting it against their tax bill when they die.

A growing number of homeowners believe they have found a "clever way" of avoiding inheritance tax (IHT), says Harvey Jones in the Daily Express: keeping their mortgage in the hope of offsetting it against their IHT bill when they die.

According to the Council of Mortgage Lenders (CML), more than one million people aged between 50 and 64 still have a mortgage, and up to 75% of them plan to keep it "indefinitely". Everyone has an IHT allowance of £325,000 and anything above this is taxed at 40%, unless it is left to a spouse or civil partner.

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