Nov 29 2006
Over five million homeowners in the UK are at risk of being liable for inheritance tax (IHT) on the basis of their property alone, it has been claimed.
Scottish Widows reports that 21 per cent of households are currently valued above the IHT threshold, while an additional five million are pushed over the £285,000 limit when their wealth is added to the value of their home.
Anne Young, tax expert at the company, said that its research had shown that the three per cent rise in the IHT threshold in the last budget had failed to halt the increase in problems for homeowners.
"The six per cent rise in property prices means that thousands more people will now face IHT this year compared to 2005."
BDO Stoy Haward recently reported that consumers of all ages favour a rise in the threshold for exemption of IHT to counter the effect of rising house prices.
