Treasury criticised on inheritance tax
More than half of detached houses in over 50 per cent of postcode districts in England and Wales are above the inheritance tax threshold, the Halifax bank has revealed.In total 29 per cent of detached houses across the UK are liable to pay the tax on properties worth over £300,000.This proportion has increased from 16 per cent five years ago, leading Halifax to criticise the gradual increase in Treasury revenues from this tax over the period."House prices have risen at a much faster rate than the inheritance tax threshold over the past decade," explained Tim Crawford, Halifax group economist."That has led to a sharp rise in the number of homes valued above the threshold. Now, the average detached house in the UK is valued above the inheritance threshold of £300,000."Halifax is calling on chancellor Gordon Brown to increase the inheritance tax threshold to £460,000, bringing it back into line with house price increases in the property market over the last decade.It claims that the Treasury's revenue from inheritance tax in the five years to 2007/8 will have risen by over 50 per cent on the previous five-year period to £16.4 billion.Last year Mr Brown raised the lower threshold on inheritance tax, charged at 40 per cent of the property's value, to £285,000. This is planned to rise to £325,000 by 2009/10.He may announce a new increase in this week's budget, due to be revealed to the House of Commons on Wednesday.
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