UK families paying inheritance tax at a 35-year high
Rising house prices have pushed the number of UK families paying IHT to a 35-year high, according to figures from the Office for Budget Responsibility report Harris & Co chartered accountants Northampton. The OBR has estimated that 40,100 bereaved families will face tax on their inheritance in the current tax year, rising to 45,100 in 2016-17 - the largest number since 1979-8 - but this number is likely to fall when the additional allowance for family homes takes effect in April 2017. The current £325,000 threshold, over which a tax rate of 40% applies, has been static since 2009, another contributory factor in the rise. Exchequer revenues from IHT are expected to hit £4.4bn in 2015-16 and £5.6bn by 2020-21, despite a reduction in the numbers subject to IHT by then.
Source: The Times (09/01/2016)