The Chartered Institute of Taxation, CIOT, is again warning that home owners must think about inheritance tax (IHT) in planning their affairs. Contacts: John Whiting, immediate past President, CIOT:
Tel: 020 7804 4422; Mobile: 07710 027 595
Press Office: Viv Rees, Head of Communications, Tel: 020 7245 4109;
Mobile 07900 220 887
The Chartered Institute of Taxation, CIOT, is again warning that home owners must think about inheritance tax (IHT) in planning their affairs.
John Whiting of the CIOT said:
“With the average house price rising at 20% p.a., very soon simply owning an average house will put you into Inheritance Tax. Mr & Mrs Average in London & the South East are already there! For many, their heirs will be faced with selling the family home to meet the IHT bill and have a somewhat smaller nest egg as a consequence.”
The CIOT notes that the threshold for IHT (currently £250,000) has basically gone up in line with general inflation in recent years and has been far outstripped by house prices increases.
John Whiting continued:
“With predictions that by 2020 the average house price in the UK will rise to £330,643, every ordinary house owner in the country could be in the IHT net. This will certainly increase the current £2.5bn yield of IHT but one has to question whether the tax was intended to reach everyone. IHT planning is always possible, but is the tax hitting the right target?”
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