16th June 2014
The amount of families set to be walloped with inheritance tax (IHT) bills this year is due to rocket by a third according to an analysis by The Sunday Telegraph.
With the UK’s economy well on the road to recovery and house prices having enjoyed strong gains on the back of the more positive outlook, the Treasury forecast that many more households will breach the £325,000 IHT threshold, after which a 40% levy is charged.
This means the number of families required to pay tax on the estates they inherit will increase by 35% to 35,600 during the course of this financial year.
And in the next fiscal year – 2015/2016 – the number of estates liable for the death tax will rise to 43,811. In fact by 2016, the number of families who must pay death tax will have risen by 66% in two years, the paper concluded.
Register here for Neil Woodford updates and receive a free research report.