Homeowners warned of potential inheritance tax bill
Mon 3rd Sep, 14:32:51 BST
Paying inheritance tax is becoming increasingly common as the value of properties in the UK continues to rise, an investment group has warned.
While the average price of a property stands at £181,460, homes in some areas cost far more, with the Halifax recently announcing that the average London property now costs £313,122.
With the current inheritance tax threshold standing at £300,000, Alan Stone, a financial adviser and stockbroker with Edward Jones, said that more people would now have estates that qualify for the charge.
"It''s very easy for an estate to be worth a lot more than the current £300,000 inheritance tax threshold, with tax charged at 40 per cent on everything above this limit," said Mr Stone, a financial adviser and stockbroker with Edward Jones.
He claimed that "an estate worth £500,000 would leave a tax liability on the balance of £200,000, meaning £80,000 would have to be paid before the estate was released to beneficiaries."
Last week, property firm Savills claimed that the number of homes eligible for inheritance tax has doubled from 520,000 in 2001 to 1.4 million in 2006.
"The burden of the increase in inheritance tax is increasingly being shouldered by middle England," said Lucian Cook, director of Savills residential research.
While the average price of a property stands at £181,460, homes in some areas cost far more, with the Halifax recently announcing that the average London property now costs £313,122.
With the current inheritance tax threshold standing at £300,000, Alan Stone, a financial adviser and stockbroker with Edward Jones, said that more people would now have estates that qualify for the charge.
"It''s very easy for an estate to be worth a lot more than the current £300,000 inheritance tax threshold, with tax charged at 40 per cent on everything above this limit," said Mr Stone, a financial adviser and stockbroker with Edward Jones.
He claimed that "an estate worth £500,000 would leave a tax liability on the balance of £200,000, meaning £80,000 would have to be paid before the estate was released to beneficiaries."
Last week, property firm Savills claimed that the number of homes eligible for inheritance tax has doubled from 520,000 in 2001 to 1.4 million in 2006.
"The burden of the increase in inheritance tax is increasingly being shouldered by middle England," said Lucian Cook, director of Savills residential research.
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