A report from The Telegraph said that nearly four times as many households as previously anticipated will be forced to pay inheritance tax.
Paying Inheritance Tax
In an article from The Telegraph, the £325,000 cutoff point at which the levy kicks in has been frozen by the government until April 2028, maintaining the value established in 2021.
According to earlier official projections, this would result in 13,400 more properties being forced to pay the fee over the course of seven years.
The exact number is now projected to be 49,400, according to internal HMRC predictions acquired by The Telegraph, with officials blaming greater than anticipated inflation.
Senior Conservative lawmakers claimed that the data demonstrated the need for ministers to support The Telegraph’s fight to eliminate the “cruel” charge before the next general election.
Higher Inheritance Tax Costs
The seven-year threshold freeze will likely result in higher inheritance tax costs for more than 280,000 households in the UK by the end of 2027–2028.
Currently, individuals are permitted to leave up to £500,000 to their kin tax-free, which is made up of a £325,000 minimum limit and an additional £175,000 for real estate.
It is possible to leave an inheritance of up to £1 million without triggering inheritance tax because when one member of a couple passes away, they can transfer their allowance to the other.
Anything exceeding those amounts is subject to a 40% tax. Before probate is granted, the children typically have to pay the bill, which might make it difficult for them to raise the money, according to 6do.world.