| A third of people expecting £300k+ inheritance don’t fully understand IHT, risking lost family wealth | Only 20% plan lifetime transfers, 22% avoid inheritance discussions and 28% don’t understand planning options | UK dividends hit £35.1bn in Q2, with banks and Rolls-Royce contributing to underlying growth |
People don’t understand IHT
Research1 shows there’s a significant knowledge gap surrounding IHT, which could cost families later down the line. A third of those expecting to inherit at least £300,000 do not fully understand IHT rules, meaning many families could miss out on maximising the wealth that is transferred. Only 20% plan to pass on their wealth during their lifetime because 37% are worried about paying for future living or care costs. Meanwhile, a quarter (28%) don’t understand their planning options and 22% are uncomfortable talking about inheritance. Perhaps it’s time to break the taboo?
Dividend update
The latest data shows UK company dividends totalled £35.1bn in Q22. Although this is down 1.4% annually, it is better than Computershare’s predicted decrease of 2.6%. The headline decline is due to a stronger pound against the dollar and one-off special dividends halving to £2bn. However, there are signs of strong underlying growth as regular dividends rose by 6.8% on a constant-currency basis to £33.1bn. Rolls-Royce was a key contributor to Q2 growth as it paid its first dividend since 2019.
Payouts from banks also went up by 8.1%, accounting for a third of the increase. As for the rest of Europe, the whole continent displayed strong growth in Q2, with dividends rising by 10% year-on-year to $261bn3. This performance is similar to the combined increases seen in North America, China and Japan.
1M&G, 2025, 2Computershare, 2025, 3Vanguard, 2025
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.