Inheritance tax delay clobbers 30,000 families
CAMPAIGNERS yesterday renewed calls for inheritance tax to be scrapped after it emerged that nearly 30,000 families face huge bills because of “bad luck” about when a wealthy relative dies.
Soaring house prices and a rise in winter deaths has led to an “unlucky generation” footing a record £4.7billion inheritance tax bill – some 20 per cent higher than last year.
They are among those paying up in the two years from April 2015 until generous new changes come in.
Currently £325,000 can be passed on tax free. By 2020 people will be able to leave an extra £175,000 in property wealth, meaning a new allowance for home owners of £500,000 – or £1million for couples.
Jonathan Isaby, of the TaxPayers’ Alliance, said: “Inheritance tax is a pernicious tax which hits families at the worst possible time.
“It’s one of the most hated taxes which raises very little revenue while adding a great deal of complexity to the tax code. Never mind raising the threshold, the Government should abolish the tax immediately.”
Reforms to inheritance tax are being ushered in after a successful crusade by The Daily Express. Former pensions minister Baroness Ros Altmann said: “The new inheritance tax rules seem to add new unfairness and complexity.
“Many families will end up paying significant sums in tax which would not be due if their loved one had just lived a little longer or in a different part of the country where house prices were lower.”
Accountancy firm Saffery Champness found that about 28,000 families caught in the no-man’s-land are set to pay death taxes of up to £80,000.
Financial adviser Alan Miller said: “The new IHT allowance is unfair as it penalises some people for dying before others. People don’t decide when they die so the rules should be applied from when they were announced. IHT is just a ‘jealousy’ tax, which is wrong. Taxes should be fair for all.”
The Treasury said: “The Government wants families to be able to pass on a home to their children or grandchildren.
“More families being pulled into inheritance tax than ever.
“That’s why we’re reforming the rules.” are the net