The number of postcode districts that have an average house price above the inheritance tax (IHT) threshold has more than doubled over the past five years, it has been revealed.
Some 236 postcode districts, or eleven per cent, are now above the price at which IHT is charged, which currently stands at £300,000, according to Halifax.
Five years ago, when the threshold stood at £242,000, just six per cent of postcode districts were liable for IHT indicating that the government has failed to raise the tax boundary in relation to house price rises.
Tim Crawford, group economist at Halifax, said that it is only fair for homeowners that the IHT is raised considerably above its current rate.
We call on the government to raise the inheritance tax threshold to £460,000," he said.
"That would account for the significant rise in house prices over the past eleven years.
"We also call on the government to commit to increase the inheritance tax threshold in line with house price inflation in the future."
At present, there are 2.3 million homes in the UK that fall into the IHT bracket.
Insureandgo offers great value
home insurance.