Insurance News Archive

Inheritance tax an 'increasing burden'

Increasing numbers of Britons are being subjected to inheritance taxes when an estate is transferred into their name, the Chartered Institute of Taxation (CIOT) has said.

According to John Whiting, the chairman of tax policy at the group, the experience of more Britons paying inheritance tax is being obscured by the fact that bereaved spouses do not pay inheritance tax.

"The inheritance tax threshold is going up in line with inflation and house prices are going up much faster," he said.

Mr Whiting also drew attention to the Treasury's estimation that only six per cent of estates fall in to the inheritance tax net.

"But two or three years ago the figure was four per cent. So it is small but growing," he added.

The group's comments follow a survey carried out by Halifax which shows that the number of properties being subjected to the tax has doubled in the past five years to 12 per cent.

27 Feb 2007