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In what is believed to be the first postcode analysis of the potential incidence of inheritance tax across England and Wales. Halifax has examined house prices and home sales in 2,098 postcode districts across England and Wales over the past five years.
As house prices have risen, the threshold below which the property is not taxed has been left way behind. Average house prices in 236 postcode districts are now above the threshold for inheritance tax.
Halifax said 2.3 million households now live in property that has an estimated worth above the level at which IHT will kick in this year.
This equates to 12% of all owner-occupied properties. In 2001 only 1.3m properties or 7% of owner occupied properties were valued above the then IHT threshold of £242,000.
The number of areas in which the typical house price is above the £300,000 threshold has more than doubled in the last five years, the lender said.
More than a third of all postcodes in the capital and 25% in the South East have average property prices above the 2007/08 limit.
Halifax said that if the threshold had increased in line with house price inflation, it would now be at a level of £460,000 - more than 50% above the 2007/08 rate.
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Postcode districts with highest prices above inheritance tax threshold |
|
Postcode district |
Town/City |
Region |
Average house price 2006 £s |
Premium to inheritance tax threshold £s |
|
SW1X |
London |
Greater London |
1,259,050 |
959,050 |
|
SW7 |
London |
Greater London |
1,105,491 |
805,491 |
|
W8 |
London |
Greater London |
1,092,287 |
792,287 |
|
W1K |
London |
Greater London |
1,063,674 |
763,674 |
|
SW3 |
London |
Greater London |
960,673 |
660,673 |
|
SW1W |
London |
Greater London |
808,742 |
508,742 |
|
GU25 |
Virginia Water |
South East |
785,215 |
485,215 |
|
W11 |
London |
Greater London |
751,115 |
451,115 |
|
SW10 |
London |
Greater London |
684,844 |
384,844 |
|
W1G |
London |
Greater London |
680,324 |
380,324 |
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Postcode districts outside South of England with highest prices above inheritance tax threshold |
|
Postcode district |
Town/City |
Region |
Average house price 2006 £s |
Premium to inheritance tax threshold £s |
|
SK9 |
Alderley Edge |
North West |
376,704 |
76,704 |
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NE20 |
Newcastle Upon Tyne |
North |
376,386 |
76,386 |
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B94 |
Solihull |
West Midlands |
370,213 |
70,213 |
|
CF71 |
Cowbridge |
Wales |
338,316 |
38,316 |
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WR7 |
Worcester |
West Midlands |
322,750 |
22,750 |
|
CW6 |
Tarporley |
North West |
322,095 |
22,095 |
|
B93 |
Solihull |
West Midlands |
316,632 |
16,632 |
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B15 |
Birmingham |
West Midlands |
308,641 |
8,641 |
|
WR12 |
Broadway |
West Midlands |
305,360 |
5,360 |
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S32 |
Hope Valley |
East Midlands |
305,061 |
5,061 |
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Postcode districts with largest increase in the proportion of house sales above the IHT threshold over the past five years |
|
Postcode district |
Town/City |
Region |
Percentage of sales above £242k IHT threshold in 2001 |
Percentage of sales above £300k IHT threshold in 2006 |
Percentage point increase over 5 years |
|
NE20 |
Newcastle Upon Tyne |
North |
22% |
61% |
40% |
|
PL28 |
Padstow |
South West |
10% |
49% |
39% |
|
EC2Y |
London |
Greater London |
36% |
76% |
39% |
|
WR7 |
Worcester |
West Midlands |
14% |
49% |
35% |
|
OX18 |
Burford |
South East |
20% |
55% |
35% |
|
TR26 |
St Ives (Cornwall) |
South West |
4% |
33% |
29% |
|
BR4 |
West Wickham |
Greater London |
27% |
56% |
29% |
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PL8 |
Plymouth |
South West |
19% |
48% |
29% |
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IP18 |
Southwold |
East Anglia |
17% |
45% |
28% |
|
NE43 |
Stocksfield |
North |
6% |
34% |
28% |
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