The Telegraph is reporting that ‘One in five landlords in England face paying hundreds of thousands of pounds in death taxes because of a government freeze on allowances, analysis shows.
More than half a million buy-to-let investors have a portfolio that exceeds the Government’s inheritance tax allowance threshold, according to estimates from accountants RSM, with experts warning that accidental landlords are particularly at risk.’
Chris Etherington, of RSM, said: “There is a ticking tax time bomb waiting for the next generation and there is little they can do about it. Thousands of families will not be able to meet a 40 per cent liability without selling up.”
The article can be seen here (subscription may be necessary) and goes on to say ‘A single landlord living in London with an average portfolio worth £410,000 and a main residence worth an average £523,000, faces a potential inheritance tax liability of £173,200, according to calculations by wealth manager Charles Stanley. This excludes any other possible cash, investments and business interests.’