Detached property owners face 'potential' IHT levy

19-Mar-2007

In news which may be of interest to first time buyers, owners of detached properties are increasingly likely to be liable to inheritance tax (IHT), research suggests.

According to data released by Halifax, across the UK 29 per cent of detached properties are now liable for IHT as they are valued over the £300,000 threshold for 2007-08, which could concern first time buyers looking to purchase a detached home.

"House prices have risen at a much faster rate than the inheritance tax threshold over the past decade," said Tim Crawford, group economist at Halifax.

"We call on the government to raise the [IHT] threshold to £460,000. That new level would account for the rise in property prices over the past decade," he added.

Indeed, five years ago 16 per cent of detached homes were liable as they were valued over the £242,000 band.

Halifax offers a range of financial products and services, including mortgages and current accounts.

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