Submitted by Andy (not verified) on 20 August, 2007 - 01:39.
I've gotta TOTALLY disagree with this comment that you wrote:
"By 2010 the threshold will rise to £350,000 and so only hit the wealthiest 6% of estates!"
That's just not true. Currently, the average house price is around 250,000 GBP. The AVERAGE. The way things are rising (and some predict as much as a 60% rise in the housing market in the coming year), the AVERAGE person will easily have a 350k house by 2010. Although we can argue from a statistical point of view as to what "average" means, let's just say it's the mid point, 50%, the norm. That means that the new threshold will not only hit the "wealthiest 6%", but also the next 44% too. In fact, if the rises are as high as some say, it'll probably be the next 55%.
If the tax free allowance of inheritance tax had risen in line with house prices in the last 15 years, the allowance would actually be £650,000. With the house prices rising so greatly, it is more important now than ever that these thresholds are raised as it's getting almost impossible for people to get onto the housing ladder. It leads to people overstretching themselves with mortgages over longer and longer terms, which people can barely afford to repay. The number of people I know with 30 year, interest only, self-certification mortgages scares me greatly.
Bear in mind that the tories are only proposing exemption from the primary family home, not from the entire estate (where the wealthiest will probably have several houses, expensive cars, yachts etc!).
© Tom Chance 2001-2007. 
I've gotta TOTALLY disagree with this comment that you wrote:
"By 2010 the threshold will rise to £350,000 and so only hit the wealthiest 6% of estates!"
That's just not true. Currently, the average house price is around 250,000 GBP. The AVERAGE. The way things are rising (and some predict as much as a 60% rise in the housing market in the coming year), the AVERAGE person will easily have a 350k house by 2010. Although we can argue from a statistical point of view as to what "average" means, let's just say it's the mid point, 50%, the norm. That means that the new threshold will not only hit the "wealthiest 6%", but also the next 44% too. In fact, if the rises are as high as some say, it'll probably be the next 55%.
If the tax free allowance of inheritance tax had risen in line with house prices in the last 15 years, the allowance would actually be £650,000. With the house prices rising so greatly, it is more important now than ever that these thresholds are raised as it's getting almost impossible for people to get onto the housing ladder. It leads to people overstretching themselves with mortgages over longer and longer terms, which people can barely afford to repay. The number of people I know with 30 year, interest only, self-certification mortgages scares me greatly.
Bear in mind that the tories are only proposing exemption from the primary family home, not from the entire estate (where the wealthiest will probably have several houses, expensive cars, yachts etc!).