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.
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