Bid to raise inheritance tax threshold

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.

Related reading