Results showing that the number of millionaires in the UK has hit an all time high has fuelled the call to remove Inheritance tax. The results showed that the number of millionaires in the UK had shot up from 230,000 in 2001 to 425,000 in 2004. One in twenty homes in London were now worth more than a million!
Our view
In simple terms, the nil tax level for Inheritance tax is just £263,000 which has been increased each year by around inflation. However, house price inflation is massively outstripping normal inflation. This means that Inheritance Tax is no longer just the domain of the rich. Many "average Joe's" are now caught.
Mr Brown is no doubt happy to keep his coffers full. Whilst for many, they are calling for a huge reform. E.g. The Institute for Public Policy is calling for a huge increase in the "nil rate" level, but for people to pay higher rates (possibly up to 50%) for the wealthy. We believe that Mr Brown, or indeed whoever the next Chancellor is, will make changes - possibly along the lines of European, tiered, wealth taxes. Although, this may come down to which route will get us the most votes at an election given Pensioners are becoming increasingly the most important voting group of the population.
Try our Inheritance Tax Calculator.
Learn more about inheritance tax in our dedidated website Inheritance Adviser.com.