Monday, October 9, 2006
Potential financial penalty awaits homeowners
Average property prices are set to surge past the inheritance tax threshold in less than a decade, research showed on Monday. If the growth in property prices and the inheritance tax (IHT) nil rate band continues at current levels, the average UK homeowner will be liable for the tax in eight years' time, Stroud & Swindon Building Society said. Paul Chafer, sales director at Stroud & Swindon, said many "ordinary" consumers still assumed they had insufficient assets to be liable for IHT -- originally intended to hit the super-rich. But he said the expected upturn in the number of estates being liable for the tax -- charged at 40 percent on assets over the threshold -- would see the amount of money flooding into the government's coffers surge by a "huge amount".