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'Record numbers' of middle-class savers being drawn into Inheritance Tax net

Economy:
'Record numbers' of middle-class savers being drawn into Inheritance Tax net

RECORD numbers of middle-class savers are being drawn into the Inheritance Tax net, latest figures show.

New data from the Office for National Statistics indicated that death duty receipts for 2015-16 are on track to hit the forecast & pound; 4.6billion.

It will be the first time payments of the hated 40 per cent levy on estates worth more than & pound; 325000 have exceeded & pound; 4billion, and will be up from & pound; 3.8 billion in 2014-15.

Payments of Inheritance Tax - which the Daily Express is crusading to scrap - were forecast to keep rising, to hit & pound; 5billion in 2018-19 despite more generous allowances coming in next year under which family homes are passed on.

Jonathan Isaby, Chief Executive of the TaxPayers' Alliance, said: "It's shocking that the taxman is snatching ever greater sums from bereaved relatives grieving for a loved one.

"The money people have responsibly saved to pass on to the next generation has already been taxed numerous times during their lifetime so they could do without politicians demanding another slice the moment they're gone."

'Record numbers' of middle-class savers being drawn into Inheritance Tax net

Justin Urquhart Stewart, director at stockbrokers Seven Investment Management, said: "When the biggest benefactor of your estate is going to be the Chancellor, that tends to grate on people.

'Record numbers' of middle-class savers being drawn into Inheritance Tax net

"It is a devious tax, which discourages family wealth. For the ludicrously wealthy it makes no difference at all but for families who have worked hard to achieve reasonable success its effects can be life-changing. "

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04 April 2016, 18:22