Financial advisers at Calculis stated that house price inflation in the UK had forced the value of relatively ordinary homes above the IHT threshold of £300,000.
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People who inherit estates worth more than this total are required to pay up to 40 per cent of it to the government in tax.
However, IHT was intended to help the state gain revenue by taxing the most affluent people in the country, prompting Calculis to say that this was no longer the case.
Alex Pegley, director of Calculis Ltd, commented: “The tax is hitting people it’s not supposed to be hitting. It’s hitting people with bog-standard houses in the south.”
According to figures from Halifax, the average price of property in Greater London now stands at £313,122 – above the IHT threshold.
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