Soaring house prices are making increasing numbers of homeowners liable
for inheritance tax, claims IFA R J Temple.
A survey conducted by Temple found that only a tiny percentage of
respondents were aware the price of their home could push them into the
danger zone for IHT and were making plans to avoid it. The IHT threshold
stands at £242,000, which includes the main home.
Last year, average house prices in Greater London reached £175,900
while the number of house sales over £300,000 in England and Wales
rocketed by 30 per cent.
Despite spiralling house prices and rising numbers of high-net-worth
investors, only 25 per cent aged between 35 and 44 said they would consider
planning to avoid IHT. Sixty-six per cent of over-65s did not think the tax
would affect them or their heirs.
RJ Temple says there was a distinct North/South divide on the issue, with
69 per cent of those in the North saying they did not think IHT would
affect them compared with 37 per cent in the South.
Just 5 per cent overall had plans in place to cover IHT liabilities while
only 8 per cent indicated they may consider the issue in the future.
Communications manager Liz Walkington says: “Our research shows there is
very little awareness of the benefits of planning for inheritance tax. We
strongly believe preparing for this should be a year-round consideration.”