Inheritance tax to almost triple says Halifax

Inheritance tax levied on wills and estates could nearly triple to an annual £5.6 billion, Halifax has claimed.

This is a massive increase on the £1.6 billion taken by the taxman on wills in 1997/97, the last significant boost to the inheritance tax threshold.

Assets worth more than £275,000 are currently charged at the top inheritance tax rate of 40 per cent, although this is due to increase to £285,000 from April.

If the Treasury increases this in line with the retail price index measure of inflation - which tracks the rising costs of goods every year - then tax receipts will rise.

Property values have increased at a faster rate than inflation, meaning that more and more cash is earmarked for the chancellor every year.

"Inheritance tax revenues are likely to rise significantly over the next 15 years if the government doesn't index the threshold in line with house price inflation," said Tim Crawford, Halifax group economist.

"The ageing of the British population means the number of estates is likely to increase substantially in the future. More of these estates will fall into the inheritance tax net.

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