Drop in Number of Estates Paying IHT

It is really interesting to hear that the number of estates whose value takes them over the £325,000 inheritance tax threshold, the level below which no tax is payable, is expected to drop during this tax year by 25 per cent.

The Revenue estimates the total take from the tax will drop from £2.83bn to £2.25bn. Overall, around 560,000 people die each year.

House prices shot up from an average of £68,000 when Labour took power in May 1997 to £200,000 in the summer of 2007, while the number of families paying inheritance tax increased from 16,000 to 27,000. Many homeowners with no assets other than their properties were drawn into the tax net.