The number of properties in the UK valued at more than the 275,000 Inheritance Tax threshold now stands at a whopping 2.1 million or 12% of all owner-occupied properties.Research out from Halifax shows that there has been an almost three-fold increase in the number of properties above the threshold in the past five years from 800,000 in Q3 2000 to 2.1 million in Q3 2005. The IHT take is expected to more than double between 1996 and 2006, from 1.6bn to a projected 3.4bn. A properly drawn up will together with professional tax advice are key factors in ensuring owner occupiers effectively manage their tax liabilities. Halifax says the average house price is now above the threshold in one in 10 local authorities, or 38 of the 384 surveyed. Five years ago the average house price was above the then threshold of 234,000 in only one in 50 local authorities. Halifax says the IHT threshold of 275,000 would now be 406,600 if it had been increased in line with house price inflation. House prices have risen by 164% in the past 10 years compared with a 79% rise in the IHT threshold. West Midlands has the highest proportion of sales above 275,000 while Northern Ireland has the lowest. More than one in three residential property sales in London are above 275,000, with one in three boroughs showing house prices above the IHT threshold. Martin Ellis, chief economist at Halifax, says: “More than two million UK households now see the value of their home above the Inheritance Tax threshold compared with 800,000 households five years ago. “This trend will worsen unless the government acts now and raises the threshold to reflect the increase in property prices. “The IHT threshold would be raised to 406,600 if it were increased in line with the rise in house prices over the past 10 years – more than 130,000 above its current level. We call on the government to link the threshold to house price inflation. “The government made a welcome move earlier in the year to lift many first-time buyers out of the Stamp Duty net. We hope it will now do the same for Inheritance Tax.”
Dear Delia My client bought a buy-to-let property early this year and found what seemed like good tenants – an unmarried couple.
LMS has agreed preferred supplier arrangements with two assessment centres for home inspectors, Building Research Establishment and Institute of Maintenance and Building Management. LMS will work with BRE and IMBM to encourage members of its 900 strong existing surveyor panel and other experienced practitioners from the building industry, to sign up with either of these […]
Solent Mortgage Services, the national branded mortgage arranger, has reported great interest from mortgage brokers in its shared ownership product through Trafalgar Homeloans, SMSs partnership with Preferred.The product, which allows up to 100% borrowing if the clients share is between 50% and 75%, is available for purchase and remortgage, both full status and self-cert at […]
Last week a debate broke out between a number of non-conforming lenders as to whether cascade lending was in the customers’ interests and if there were any regulatory issues. This issue deserves examination in more detail.
The latest housebuilding figures from the Department for Communities & Local Government confirm the worst fears of many within the property industry. We are failing to address the housing shortage in any meaningful way. Let’s look at the number of housing ‘starts’, new housing projects where work has begun. In England, work has been started […]
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