More get caught in IHT trap – Tax take up 25% in twelve months!

Figures from HBOS estimate 1.5m properties in the UK are worth more than £285,000 today. This could increase to 4.2m properties by 2020 they say if the exemption increases only with inflation.

The tax continues to bring in more each year with the most recent total coming in at £3.6bn this year up from £2.9 last year. It could reach as much as £5.5bn by 2020 according to HBOS.

Clearly a once elitist tax is becoming ever more populist in its reach. It may only take the top tier today but with the individual exemption at £285,000, it doesn’t take a mansion in the shires to cross the threshold. A decent two bed flat in London should do it.

Though we should perhaps give some limited credit to the inflation-busting  increases pencilled in for 07/08 and 08/09 coming in at 5% and 8% respectively. This is modest help given booming property prices but, baring a slump, will not make the issue go away.