Bid to raise inheritance tax threshold
The inheritance tax threshold should be raised to £300,000, KPMG has advised the Chancellor.
Link: ICAS predicts widespread non-compliance
In the run-up to the Pre-Budget Report, KPMG says the increase should happen to match the rise in recent years in house prices.
Currently it stands at £263,000.
‘As average house prices have more than doubled over that period, KPMG suggests the Chancellor should announce an increase to £300,000 from 6 April 2005 to start to reduce the ever-increasing numbers of estates subject to inheritance tax,’ said David Kilshaw, a tax partner at KPMG.
Inheritance tax is increasingly becoming a political issue.
The huge rise in house prices over the last few years has pushed many estates above the threshold and left relatives liable to pay a levy on the estate of the deceased.