The Biggest Inheritance Tax Area In The UK Has Been Revealed
The biggest inheritance tax area in the UK has been named as Guildford, Surrey. On average they paid £231,000 each in 2015/2016. As many as 658 families were subject to the tax, more than anywhere else in the UK. The area is famously affluent, being just a short commute into London for white collar workers.
What Is Inheritance Tax?
Inheritance Tax in the tax on the estate, including property, money and possessions of someone who has passed away. There’s usually no inheritance tax for the majority of people. This is because in order to pay Inheritance Tax, a family must have to pass on an estate worth at least £325,000.
When you die, the government will asses how much your estate is worth before deducting your debts to establish the true value of your estate. Your assets include cash in the back, investments, vehicles and property. Manchester solicitors can help with establishing your assets and provide you legal advice during this time.
Where Pays The Most And Where Pays The Least?
In contract to Guildford, only 31 estates in Wigan (Greater Manchester) were eligible for inheritance tax. After Guildford, the places most likely to pay Inheritance Tax were still in the south – Chelsea and Wimbledon in South West London.
The data also shows that the highest Inheritance Tax bills were paid by families living in West London, including places like Kensington and Hammersmith. On average, those liable in this area paid over £390,000. Other than Wigan, other areas with the least amount of households paying the tax were Motherwell, Western Central London and Falkirk.
Controversially, married or civil partners who pass on their allowance are not liable to pay Inheritance Tax unless their estate is worth more than £650,000.
Soaring House Prices In South
In 2015, the Chancellor of the Exchequer revealed that he would scrap the duty when parents or grandparents pass on a home work up to £1 million. However, the rise in house prices in the south has called for campaigners to complain about the £325,000 tax that has been frozen since 2009. This seems unfair to many because the prices of houses are dramatically increasing. Those with large Inheritance Tax bills have been advised to consult residential conveyancing solicitors to check accuracy. The Office for Tax Simplification has taken the campaigner’s views into consideration and is said to be compiling a report for release soon. In the meantime, those with Inheritance Tax have no choice but to take the brunt of the costs.