Big rise in inheritance tax forecast

The Office of Budget Responsibility has forecast that under current rules the number of families paying inheritance tax will rise by 50% in the next five years, mainly because of rising property prices, says the Daily Telegraph.

Over half the current Treasury take from the tax comes from the South East and this is expected to rise as the north-south property price gap widens. For these people, the use of an appropriate life policy held in trust to meet the liability to IHT might be a “non-contentious” solution worth considering.