You are here: Home - Retirement - Retirement planning - News -

Thousands more families to face IHT bills this year

Written by:
Thousands more families will be required to pay inheritance tax (IHT) this year as an improving economy and rising house prices pull them above the threshold, according to figures.

A total of 35,611 deaths will result in estates being charged IHT in 2014-2015, up 35% on the 26,337 recorded during the last financial year, according to Sunday Telegraph analysis of Office for National Statistics forecasts for death numbers and Office for Budget Responsibility (OBR) projections of estates expected to become liable for the tax.

In 2015-2016, the number of estates liable for the death tax will rise to 43,811 and, by 2016, the number of families who must pay death tax will have risen by 66% in two years, according to the analysis.

Inheritance tax is levied at a rate of 40% on the value of an estate above a threshold of £325,000. Married couples can double the allowance by passing on assets to their children or other relations.

Though Chancellor George Osborne has frozen the threshold at 2009 levels until at least 2018, rising home and asset values are seeing more people pulled above it.

Property prices have been rising at faster than 10% annually in some areas, and the Bank of England has suggested they pose the biggest single threat to the economic recovery.

The Sunday Telegraph said its analysis has been verified by the independent OBR.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

5,000 Lloyds current account holders to receive £200 bonus

Lloyds Bank will randomly select 5,000 current account customers to receive a bonus £200 payment to help with...
5,000 Lloyds current account holders to receive £200 bonus

NS&I to delay phasing out of Premium Bonds prize warrants

National Savings and Investments (NS&I) is postponing the phasing out of Premium Bonds prize warrants unti...
NS&I to delay phasing out of Premium Bonds prize warrants

Savings rates carnage: Six alternatives to holding cash

The pandemic has seen many people have more cash to save than normal. But with savings accounts paying paltry...
Savings rates carnage: Six alternatives to holding cash

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

Read previous post:
Investors flock to safe havens as Iraq violence builds

Investors are moving back towards safe haven assets such as gold as ongoing violence in Iraq hits markets.