Goverment Revenue From Inheritance Tax Up 70 Per Cent

New findings have revealed that the amount of money earned by the Treasury from inheritance tax has soared by 70 per cent in the last five years.

Data from the Office of National Statistics reveals that last year HM Revenue and Customs collected £4.6billion from inheritance tax, up from £2.69billion in 2010.

It is thought much of this increase is down to rising property prices. The threshold for paying the tax has remained frozen at £325,000 since 2009, and soaring property prices have dragged an increasing number of families into paying the death duties.

Commenting on the Treasury's rising inheritance tax revenues, Tim Fullerlove, tax specialist at law firm Wilsons, said:

"Inheritance tax was originally intended as a tax on the very wealthy, but it has now become a general tax for a large proportion of the middle classes.

"With the increasing value of property, it is no longer just the large windfalls of inheritance from estates that are being taxed.

"As the threshold has stayed at a fixed rate for almost seven years, individuals who were not originally intended to be taxed are now facing significant bills because of the rise in property prices, particularly in London and the South East of England."

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Collings

Inheritance Tax Solicitors