EDDIE O’GORMAN OF THE WAY GROUP WARNS THAT MORE AND MORE HOMEOWNERS ARE LIKELY TO FALL VICTIM TO INHERITANCE TAX AS THE VALUE OF THEIR PROPERTIES CONTINUE TO RISE IN THE CURRENT HOUSING BOOM
23 June 2014
As the value of houses in the UK rises, more and more people are being pushed over the threshold of paying inheritance tax.
‘Estates become taxed when they reach the £325,000 mark, this is an increasing problem for homeowners, particularly those with properties in London and the south-east/M25 corridor, as the value of their properties are rising fast in the current housing climate,’ says Eddie O’Gorman of the WAY group.
The Treasury has forecast that the number of families required to pay the tax could rise to 35,600, which is a 35% increase this year alone. That number is expected to increase to almost 44,000 next year. As the tax is already unpopular, these figures are worrying many people in the UK. The tax comes when a family member has died and many people feel that they have already paid enough tax throughout their lives.
The UK has one of the harshest death duties of any country, which is why the unpopular tax was promised to be changed by George Osborne going into the last election, however the government has been unable to follow up on this promise.
Eddie O’Gorman is chief executive of the WAY group, which is the largest provider of inheritance tax plans in the UK. He is available for comments on the situation and his team are able to crunch the latest inheritance tax data on request.
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