HMRC tax threshold frozen since 2009 'affects more people'

HMRC tax threshold frozen since 2009 'affects more people'New research suggests the threshold should be considerably higher than it isCommentsMoneySteven Smith Content Editor09:41, 23 Apr 2026Updated 09:48, 23 Apr 2026View 3 ImagesAllowances have been frozen since 2009(Image: coldsnowstorm via Getty Images)High net worth individuals (HNWIs) in the UK believe that HMRC's Inheritance Tax (IHT) thresholds should be updated, according to the latest research from wealth manager Saltus. It said findings from the Saltus Wealth Index - a study of 2,000 UK adults with assets of £250,000 or more - showed widespread belief that this static threshold was outdated.‌Half (50%) of respondents believed the threshold should be increased, while nearly a third (30%) thought inheritance tax should be abolished entirely. The IHT nil rate band has been frozen at £325,000 for almost 17 years, despite significant rises in inflation and property values over that time.‌The last increase came in April 2009, when it rose from £312,000 to £325,000, a rise of around 4%. This freeze has meant a growing number of estates have become liable for the tax without any formal change in rates.‌Around one in eight (16%) supported a threshold between £500,000 and £1m, while 8% favoured a higher range between £2m and £5m. On average, respondents believed the threshold should sit at around £1m.View 3 ImagesIt can be a headache for families(Image: bymuratdeniz via Getty Images)Concerns around IHT are also reflected in perceptions of fairness, Saltus said. After higher rates of Income Tax at 40% and 45% (22%), Inheritance Tax (16%) is viewed as the most unreasonably high tax in the UK. Among those aged 55 and over, this rises to 28%, making it the tax they are most likely to view as unreasonable.‌If the IHT nil rate band had continued to grow in line with historical increases prior to 2009, it would now be around £581,000, Saltus said. Similarly, when tracked against long term house price growth...