Press Release of 8 February 2002 Contacts:
John Whiting, President, CIOT, Tel: 020 7804 4422; mobile 07710 027 595
Viv Rees: Press Office Tel: 020 7235 9381;
mobile 07900 220 887
The Chartered Institute of Taxation, CIOT, is warning people to re-think their tax affairs to make sure they take into account Inheritance Tax (IHT) “the forgotten tax”. This is prompted by the latest housing figures issued by the Land Registry (8 Feb).
John Whiting, CIOT President said:
“Most people assume that IHT doesn’t apply to them – but with the average price of a home in London and the south east now over £220,000, it’s clear that just owning a house in many areas puts you into the IHT net as the nil rate band is currently £242,000.
“Inheritance tax is a levy that can be planned for and mitigated, but one has to question whether the tax is hitting the right target if ordinary householders are having to worry about it.”
In his March 2001 Budget, the Chancellor commented that 96% of estates were outside Inheritance Tax. The CIOT believes that the situation is changing.
John Whiting continued:
“The growth in house prices means that there is a potential time bomb ticking within the IHT system. This really can’t be the tax that everyone forgets about any more.”
The Royal Chartered Institute of Surveyors predicts that the number of houses over £250,000 will rise to 10% over the next ten years.
NOTE FOR EDITORS:
The Chartered Institute of Taxation (CIOT) is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT deals with all aspects of direct and indirect taxation. Its primary purpose is to promote education in and the study of the administration and practice of taxation. One of its key aims is to achieve a better, more efficient, tax system for all affected by it - taxpayers, advisers and the authorities. The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its aims: it is entirely apolitical in its work. The 12,000 members of the CIOT have the practising title of “Chartered Tax Adviser.
The Institute was established in 1930 and received its Royal Charter in 1994. It is a United Kingdom member of the Confédération Fiscale Européenne (CFE), the umbrella body for 150,000 tax advisers in Europe. As part of its charitable activities, the CIOT also sponsors the Low Incomes Tax Reform Group which works to improve and simplify the tax system so as to make it more responsive to the needs of those who cannot afford to pay for tax advice.
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