The amount of revenue the Exchequer collects from inheritance tax (IHT) could triple to £5.6bn a year in today's money by 2020, according to a report by Halifax.
The figure represents a 249% increase from the £1.6bn the Exchequer received in 1996/97, the last time the IHT threshold was raised significantly. Halifax’s revenue estimates are based on the threshold rising in line with retail price inflation (RPI) of 2% p.a., which is the policy pursued by successive governments from both political parties. If the threshold were increased in line with house price inflation, it says the average annual increase would be 6% p.a. Halifax forecasts the failure to link the threshold to house prices could generate an extra £1.1bn each year in IHT for the ...
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