Tax planning news
Unmarried couples 'will lose out' to inheritance tax
27 February, 2007
Couples who choose not to get married are putting themselves at risk of losing out on cash when it comes to inheritance taxation
According to the chairman of tax policy at the Chartered Institute of Taxation, the number of people who are subject to paying inheritance tax on property has increased.
John Whiting added that a case which was currently going through the European Court of Justice, involving two sisters who jointly own a home, demonstrated a possible unfairness when inheritance tax is applied.
His comments come after a new survey from Halifax revealed that the number of properties in the UK subject to inheritance tax has almost doubled over the past five years.
Around 12 per cent of homes in this country are liable for the tax with a massive 54 per cent of London postcodes now having an average house price above the inheritance tax threshold.
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Mr Whiting said: "There are [currently] two sisters taking a case to the European Court of Justice [citing] a breach of human rights because if one of them dies and they own the house jointly, then the survivor has to pay inheritance tax to stay in the house.
"Unmarried couples are in the same position."
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