iht is ensnaring greater numbers

The boom in property prices has meant that the assets of many middle class families now pass the thr...

The boom in property prices has meant that the assets of many middle class families now pass the threshold for inheritance tax (IHT), despite the fact it has been raised from £260,000 to £275,000 for 2005/06, and will be £300,000 by 2007/08. According to the Revenue & Customs, estates paying IHT rose from 15,000 in 1997 to 30,000 in 2004. The situation of people liable to IHT is not helped by the introduction of the pre-owned asset rules, which came into force on 6 April this year. These prevent assets being passed on while they are still being used, by making them liable to IHT or income t...