Finance Choices
2.1 million properties hit by inheritance tax
There has been a three-fold rise in the number of properties above the inheritance tax threshold in the past five years, the Halifax bank has said.
Their research shows that 2.1 million UK households or 12% of all owner-occupied properties now see the value of their home above the inheritance tax threshold (£275,000) compared to 800,000 households just five years ago.
In one in ten local authorities the average house price is above the threshold.
At the moment, people have to pay tax at a 40 per cent rate on inherited assets worth more than £275,000. That threshold is scheduled to rise to £300,000 in the tax year 2007/08.
However Martin Ellis, the chief economist at the Halifax, said more action was needed: ?We call on the government to link the threshold to house price inflation.
?According to our figures, the inheritance tax threshold would be raised to £406,600 if it were increased in line with the rise in house prices over the past ten years ? more than £130,000 above its current level.?
Shadow chancellor George Osborne said: ?Hundreds and thousands of hard working families who happen to live in parts of the country where property is expensive are being penalised.?
Their research shows that 2.1 million UK households or 12% of all owner-occupied properties now see the value of their home above the inheritance tax threshold (£275,000) compared to 800,000 households just five years ago.
In one in ten local authorities the average house price is above the threshold.
At the moment, people have to pay tax at a 40 per cent rate on inherited assets worth more than £275,000. That threshold is scheduled to rise to £300,000 in the tax year 2007/08.
However Martin Ellis, the chief economist at the Halifax, said more action was needed: ?We call on the government to link the threshold to house price inflation.
?According to our figures, the inheritance tax threshold would be raised to £406,600 if it were increased in line with the rise in house prices over the past ten years ? more than £130,000 above its current level.?
Shadow chancellor George Osborne said: ?Hundreds and thousands of hard working families who happen to live in parts of the country where property is expensive are being penalised.?
posted by Bruce Wayne at 5:43 PM
2.1 million properties hit by inheritance tax
5 Comments:
There was an article out recently that said because of all the stealth taxes (such as inheritance tax) employed by Gordon Brown, that many people in the UK are paying 50% taxes. Enough is enough. This government are becoming simply too much!
Stealth taxes are indiscriminate and affect nearly everyone in society. An open, honest taxation policy which helps the most needy in society and realistically taxes those who can afford to pay more would be far better. Introducing a higher tax rate for those on £100k plus would be a good start. How can it possibly be fair for someone to work all their life, pay tax, pay interest on a mortgage, die and then the government take 40% of everything over £263k (not that much if you have a house in the south).
Ah, you see. Thats where good tax planning advice comes in with regards Inheritance Tax. Gift it to the Grandkids a few years before you're likely to die!! Then you miss out the Inheritance Tax on one generation.
And one of the main ways to avoid Capital Gains Tax is to die.
Morbid I know.
Actually Ronnie, you're wrong, you can only gift £3000 a year without paying tax. If you transfer your house into your childrens name and then stay alive for another 7years, your children will be hit with Capital Gains tax if they already own a house. Inheritance tax is actually very difficult to avoid unfortunately.
The fact is that this government is spending a hell of alot more on our services but there is next to no improvement, why? because it all goes to the adminisphere who sucks up all the money.
My cousins wife works for the NHS, what does she do? feck all, seriously, she does feck all, her job is to stayed employed so the department doesn't loose funding
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