Inheritance tax contributions on the rise
The number of estates paying inheritance tax has risen by two-thirds overthe past five years, new figures reveal.
The National Audit Office said £2.5bn was raised in tax for the government’s coffers last year from 30,000 estates.
Rising house prices over the last few years are seen as the main reason why more estates are becoming liable for the tax.
Under current laws, an estate worth in excess of the £263,000 threshold is taxed at a 40% flat rate.
Because of the surge in house prices, the government has been lobbied to increase the tax threshold so that it catches up with house price inflation.