Halifax calls for IHT limit to be raised

Almost a third of the detached properties in the UK are valued at above the inheritance tax (IHT) threshold, it is reported.

And the price of the average detached property, at £326,396, also stands above the threshold, research by Halifax has found.

The building society analysed data from over 1,700 postcodes in the country and found that more than 50 per cent of them have detached properties that are valued over the IHT limit.

Tim Crawford, group economist at Halifax, thinks that the minimum IHT value should be raised in order to keep track with the rise in house prices.

“House prices have risen at a much faster rate than the inheritance tax threshold over the past decade,” he says.

“We call on the government to raise the inheritance tax threshold to £460,000,” he added, claiming that it would represent a fairer level.

House prices all over the country have been increased steadily in the past few years and reports suggest the price of the average property in every area is now over £100,000.

However, Nationwide economist Fionnuala Earley has speculated that the market may be “waning” as it suffers the effects of the January interest rate rise.

© Adfero Ltd

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