Insurance News Archive
Inheritance tax to hit more property owners
A fifth of properties will be over the inheritance tax (IHT) threshold of £285,000 by 2020, according to new research.
A study by Halifax of Inland Revenue figures reveals that in the first half of this year £1.7 billion has been collected in IHT £200 million higher than a year ago.
Furthermore, the amount collected so far this year matches the IHT collected for all of the 1997/98 financial year.
Halifax group economist Tim Crawford said: "Inheritance tax revenues have risen because the threshold for the tax has failed to keep pace with the rise in property prices over the past ten years.
"More and more homes are now valued above the threshold and more estates are now potentially liable for the tax. We call on the government to raise the inheritance tax threshold to £430,000 to account for the increase in property prices over the past ten years."
It is estimated that, without a change to the IHT threshold, in 2020 a fifth of properties would be liable for the tax and the taxman would be taking in £5.5 billion.
25 Jul 2006