IHT tax receipts rise

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 Rising house prices boost IHT receipts

HMRC collected £4.7bn in IHT in 2015/16 - a 22% increase on the previous tax year, when IHT receipts were £3.8bn. This was also the highest-ever amount since the current tax system was introduced 30 years ago and almost double the 12% growth recorded the previous year, according to the figures from the ONS. Soaring house prices have dragged an increasing number of people into paying the tax, calculated at 40% of anything above £325,000 for individuals and £650,000 for couples. Critics argue that a tax initially intended to capture only the rich is now being paid by people who are not particularly wealthy but have seen their family home rise in value. The ONS said that the rise was also driven by a 6% increase in the number of deaths leading up to 2015/16 compared to the previous year. Regional figures show that the biggest chunk of IHT is paid in London and the South East. High property prices mean that the average IHT due per taxpayer in London was £223,000 and in the South East it was £176,000. This compares to £147,000 in Wales and £142,000 in the North West of England, the ONS said according to Harris & Co chartered accountants Northampton

Source:   Financial Times (30/07/2016)

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