One in Three Detached Property Owners face Inheritance Tax
Wednesday, December 28th, 2005
Inheritance tax was once only a concern for the wealthy - but now many homeowners are having to plan for Inheritance Tax for the first time.
According to new research from the Halifax, rising house prices mean 31% of detached property sales in the UK are now above the Inheritance Tax threshold of £275,000.
Five years ago, only 13% of detached property sales were above the Inheritance Tax threshold.
From 1997 to 2004, the Inheritance Tax threshold has increased by 22% - broadly similar to inflation - but completely out of step with house prices which have risen by 129% - leading to a boom in revenue from Inheritance Tax.
The government now raises as much revenue from Inheritance Tax as it does from Beer and Cider duties - £3.4bn.