Inheritance tax is ‘ticking time bomb’

Today the Land Registery calculated the average cost of a home in London and the South East at £220,000, putting many taxpayers into the ‘IHT net’ as the nil rate band is currently £242,000.

Chartered Institute of Taxation president John Whiting said the increase in the average cost of a home threw a question mark over the 2001 Budget claim that just 4% of estates had to pay IHT.

‘The growth in house prices means that there is a potential time bomb ticking within the IHT system,’ he warned.

Quoting the Royal Chartered Institute of Surveyors, the CIoT said 10% of houses in these regions would cost more than £250,000 by 2012.

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