Inheritance tax spreading as house prices rise

Inheritance tax, traditionally thought of as the exclusive preserve of the super-rich, is affecting more and more Britons as house prices rise.

This is the claim made today by Calculis Ltd, an independent financial advisor.

Currently, UK tax laws have 40 per cent in every pound of assets left by a deceased person over £300,000 being made payable to HM Revenue and Customs.

Director of Calculis Alex Pegley said: “The tax is hitting people it’s not supposed to be hitting; it’s hitting people with bog-standard houses in the south.”

According to the latest Halifax House Price Index, average property prices are 11.2 per cent up on the equivalent month in 2006.

Furthermore, a recent report from the National House Price Federation claimed that house prices would rise by a further 40 per cent in the next five years.