Halifax calls for IHT threshold rise
According to Halifax, Britain's largest mortgage lender, the inheritance tax (IHT) threshold should be hiked to £430,000.
Inheritance tax takes 40% of all money and assets passed on over its minimum threshold of £285,000. Halfax reports that average house prices in one town in ten are above this minimum limit already and by 2020 one home in five (20%) in England will be worth more than the inheritance tax threshold.
Halifax economist Tim Crawford said "We call on the government to raise the inheritance tax threshold to £430,000. Doing so would allow for the significant increase in property prices over the past decade. It would also ensure that many middle income home owners avoid a tax which was never intended that they pay in the first instance."
46 out of 48 towns with an average property price above the rate band, are in the south of England, according to the Halifax data. The other two are Wilmslow in Cheshire and Ilkley in West Yorkshire.
Inheritance tax takes 40% of all money and assets passed on over its minimum threshold of £285,000. Halfax reports that average house prices in one town in ten are above this minimum limit already and by 2020 one home in five (20%) in England will be worth more than the inheritance tax threshold.
Halifax economist Tim Crawford said "We call on the government to raise the inheritance tax threshold to £430,000. Doing so would allow for the significant increase in property prices over the past decade. It would also ensure that many middle income home owners avoid a tax which was never intended that they pay in the first instance."
46 out of 48 towns with an average property price above the rate band, are in the south of England, according to the Halifax data. The other two are Wilmslow in Cheshire and Ilkley in West Yorkshire.
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