New data on rising property prices in the UK has suggested that a growing number of families could face an inheritance tax (IHT) “shock” going forward, according to an expert.
The Halifax House Price Index for June 2022 revealed that the average house price now stands at £294,845, with prices rising by 1.8 per cent across the month. It added that prices have now reached an annual growth rate of 13 per cent, which is the highest since late 2004.
Addressing IHT issues
Dicky Davies, Business Development Director at Tower Street Finance, said the latest findings hinted that many families may have to address IHT issues in the coming years.
He explained: “These price rises could have major implications for some families. Property is often a key part of a person’s estate, so – with prices creeping upwards – the value of estates may also be on the rise.
“Depending on the plans that an individual has in place, this may mean that loved ones end up facing the shock of an unexpected IHT bill, particularly as IHT Thresholds have been frozen until 2026. This can be a real surprise to many families and can often leave people with stress and concerns about how they will pay.”
However, Dicky added that anyone concerned by the issue should not tackle it alone.
He said: “There is support out there to help and we notably offer our IHT Loan. This can be used when a liability needs to be paid, but there are no funds available. Once the paperwork is complete, we can pay HMRC directly and the estate repays the funding. This should provide some important relief at a tough time.”
Find out more at about our Inheritance Tax Loan product or call us on 0343 504 7100.