WA2

Inheritance tax 'hits thousands more homeowners'

500,000 more homeowners fell into the inheritance tax (IHT) bracket in the first half of 2004, according to a report from Halifax Financial Services.

Rocketing house prices have pushed many people over the £263,000 IHT threshold.

Although the threshold was raised from £255,000 to £263,000 in April, house prices have risen by an average 12%.

The Halifax's chief economist, Martin Ellis, said, 'The Government's reluctance to raise the threshold in line with house prices means that more and more ordinary people are now finding that their estate will potentially be subject to inheritance tax'.

An estimated 2.4 million people are now potentially liable for the tax, which at its full rate is charged at 40%.

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