Inheritance tax is unfair

Inheritance tax is unfair to ordinary families

Huge numbers of homeowners face being hammered by Inheritance Tax, as rising property prices push middle income earners into Gordon Brown's tax trap.New research published by the Halifax bank reckons that the number of homes crossing the wealth tax threshold will rise from the current 2.4 million to four million in 2015 and six million by 2025.It means that while in the past 10 years the number of household hit by the tax - which is levied at 40 per cent on all estates over a £263,000 threshold - has risen by 400 per cent, within the next two decades one third of all domestic property owners will be affected.The number of towns where the average house price is above the IHT threshold has also risen from none in 1994 to 67 (12%) in 2004 out of a total of the 554 towns surveyed.

Commenting, Shadow Chancellor Oliver Letwin said: "Inheritance tax is increasingly a tax on the homes of ordinary families. Around six million people are currently living in homes which could be affected. This research highlights how even more will be dragged into paying the tax in the future." He told conservatives.com: "It is unfair to impose a high marginal rate of tax upon hard-working families who happen to live in parts of the country where property is expensive. I believe the tax system should support rather than penalise families building their financial security and independence."