Every year tens of thousands of grieving families pay inheritance tax (IHT) to HM Revenue & Customs. Their numbers will increase as the threshold is frozen until 2026, while house prices continue to spiral. Many who thought they were not rich enough to pay the hated death tax are in for a shock.
As we reported recently, the average inheritance tax (IHT) bill is already £210,000 and that is set to climb sharply.
IHT was originally targeted at the super wealthy but ordinary middle income Britons are getting caught by failing to plan or because the rules are so complex.
Shaun Moore, tax and financial planning expert at Quilter, said HMRC collected IHT totalling £3.6 billion collected between April and October 2021 alone. “This is £600 million higher than in the same period a year earlier.”
Moore said soaring house prices are a big factor behind the increase, with latest official data showing growth at 11.2 percent in the year to September.
That took the average house price to a record £270,000, up an incredible £28,000 on this time last year.
Yet the £325,000 IHT threshold has…
