View more on these topics

Halifax calls for Govt to raise IHT threshold

Halifax is calling on the government to raise the inheritance tax threshold to £430,000 and to make a commitment to link the threshold to house price inflation in the future to allow for house price inflation.

Research from the lender shows that the combined revenue raised from IHT and the higher rates of stamp duty on residential property reached £6.7bn in the past financial year.

Halifax says this highlights the effects of the failure to increase the thresholds for IHT and the higher rates of stamp duty in line with house price inflation.

The lender estimates that this change would cost the Chancellor around £1bn per annum in lost revenue and says that if the higher stamp duty thresholds had been increased in line with house price inflation since July 1997, the £250,000 threshold would now stand at £650,000 whilst the £500,000 would be £1.3m.

Chief economist Martin Ellis says: “Smaller inheritances, reliant mainly on the family home, are more likely to attract a 40 per cent rate of inheritance tax than five years ago, while stamp duty bills of more than £7,500 are becoming more common.

“We call on the government to raise the higher stamp duty thresholds and the inheritance tax threshold in line with the increase in house prices over the past decade. We believe the government also should commit to index link all property related tax thresholds to house price inflation in the future.”

Recommended

Capita admin support for MetLife

Capita will provide admin support to MetLife on its Sipp and trustee investment plan business, which is set for launch in January 2007.

Private numbers

In the usual raft of statistics that has passed across my desk recently were a couple of interesting figures. There was confirmation that private investors are again piling back into the market.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com