Could you lose 40% of your home to tax? Use our calculator to find out…Don’t be one of the millions of UK homeowners that WILL hand thousands over to the taxman unnecessarily
Why you need to understand all property taxes, including Inheritance tax
In 1997 if the value of all your worldly possessions was less than £215,000, then there would be no tax to pay on your death.
Today the position is similar, but the figure has risen to £325,000.
The situation is a bit better if you are married and own a house with your spouse, but there is still a big problem!
You see, most of the £215,000 back in 1997, probably related to your matrimonial home and if you had a house worth £215,000 in 1997 it would be worth around £815,000 today (according to the Nationwide house price calculator).
So here’s the problem. Go forward 20 years from 1997 to the present day. You’re living in the same house, in exactly the same situation; death tax, now called inheritance tax, of almost £200,000 will be handed over to the government. Potentially even more if you haven’t made a will and asset protection trust.
And just remember if you are approaching 55 now, and you live another 20 years the same thing could happen again, or worse. Check our house price and inheritance tax calculators, so you know how much you stand to lose right now.