Mar 20 2007
The value of nearly a third of detached homes in the UK would make their owner liable for inheritance tax (IHT), it has been claimed, with the largest impact occurring in the south of England.
Halifax reports that 29 per cent of detached homes in the UK are sold for a price exceeding the £300,000 threshold, up from 16 per cent over the then £242,000 threshold five years ago.
In London, 88 per cent of detached homes are sold for over this amount while the figure for the south east is 59 per cent.
Tim Crawford, group economist at Halifax, said: "House prices have risen at a much faster that than the inheritance tax threshold over the past decade.
"That has led to a sharp rise in the number of homes valued above the threshold."
He added that the government should increase the IHT threshold to £460,000 to better reflect increases in house prices over the last ten years.
Last month, life and pensions firm Friends Provident announced that it had widened the choice available for independent financial advisers for their clients regarding IHT planning.
