Insurance News Archive

More homeowners feel inheritance tax 'squeeze'

The number of postcode districts in which average house prices are over the inheritance tax (IHT) threshold has more than doubled in the past five years, new research from Halifax shows.

During the course of 2006, a quarter of sales in 423 postcode districts across England and Wales experienced the tax.

This compares to just 11 per cent over 230 postcode districts facing IHT in 2001.

The areas in which the proportion of average homes facing IHT has increased most significantly include Newcastle (up from 21 per cent to 61 per cent) and Padstow, which experienced a 39 per cent increase.

However, London postcodes possess the greatest proportion of house prices above the IHT threshold, with the top ten most expensive areas being in London.

Postcodes in Knightsbridge and Kensington, with average house prices of £1,259,050 and £1,105,491, are the highest in the country.

26 Feb 2007