With house prices in Lichfield soaring, Michael Fabricant is backing calls to address the increasing level of inheritance tax.
According to the Land Registry, the cost of an average detached house in Lichfield District is now £293,560 and is considerably more
in areas like Lichfield City. Yet the threshold for paying inheritance tax is only £263,000. On someone’s death, any inheritance
over this threshold is taxed at 40%. Since most estates will also include other financial assets, many will be liable for
inheritance tax even if their property is slightly below the threshold.
Michael says: "Since 1997, house prices have risen by an average of 138 per cent, but the inheritance tax threshold has risen by
only 32 per cent so more people than ever before are liable for this tax. Inheritance tax was originally intended as a tax on just
the very wealthy, but now it is increasingly a tax on the homes of ordinary families. I believe the tax system should support
families’ financial security and independence, rather than penalising them purely because of rising house prices."
Conservatives have outlined possible options to reduce or abolish this increasingly unpopular tax. They have suggested 5 options:
- Abolishing inheritance tax.
- Lowering the inheritance tax rate, which is currently 40 per cent.
- Exempting principal residences from inheritance tax.
- Raising the inheritance tax threshold from the current level of £263,000
- Linking the inheritance tax threshold to increases in house prices.
Michael Fabricant says: "I would be interested to hear from local residents which of these five options they would favour. They
should write to me at The House of Commons, London SW1A 0AA or email me by using the webform"