Londoners to bear the brunt of stealth IHT rises

Londoners to bear the brunt of stealth IHT rises

Londoners are set to bear the brunt of a stealth inheritance tax (IHT) rise announced by the Chancellor in his budget last week because of property values in the capital.

The nil rate band and residence nil rate band were frozen by the Chancellor until 2026. But average prices in London are already higher than the nil rate band of £325k plus the extra £175k residence nil rate band for homes that pass to direct descendants.

And by 2025 average prices in London are forecast to have risen to £548k by estate agents Savills, leaving an IHT liability of at least £19k before any other assets are taken into account.

With average property prices in the South East and East expected to rise to £394k and £362k respectively by 2025, many homeowners in these areas could also leave behind an unexpected tax bill for their loved ones.

Tower Street Finance’s Dicky Davies said: 

“The stamp duty extension, the guarantee scheme for lenders offering 95 per cent mortgages and a desire for more space after a year of lockdown are all stimulating demand in the housing market and pushing prices higher.

“By freezing IHT thresholds where they are today thousands more families are going to be hit with an IHT bill purely through house price inflation, which is what the Chancellor is banking on to increase the Government receipts from £5.1bn last year to £6.6bn by 2026.

“With more estates liable for IHT we’ll see an increase in people who are struggling to pay the bill, and this is where our Inheritance Tax Loan comes in. We pay the Inland Revenue directly and the loan is repaid from the estate once the Grant of Probate is issued meaning there is no personal liability or risk for the executor.”

Tower Street Finance will be hosting a webinar on April 13 to discuss the benefits of the IHT Loan and how it can help you provide a more holistic service for your clients.

For more information contact i[email protected] or call 0343 504 7100.

This article was submitted to be published by Tower Street Finance as part of their advertising agreement with Today’s Wills & Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills & Probate.

Tower Street Finance










Tower Street Finance (TSF) was set up by an experienced management team who saw a need for relevant, accessible financial products which benefit administrators of estates, executors and beneficiaries.

We are passionate about using insight, data and our considerable experience to help customers with innovative products and services, including those who may be in financial difficulty.

We currently have four products which are aimed at the inheritance market and they all have a common DNA. There are:

  • No credit checks
  • No risk or personal liability
  • No charge over property
  • No monthly repayments
  • No requirement for a Will

IHT Loan

The IHT Loan can help when estates are effectively ‘locked’ because the executor needs to pay the IHT to get the Grant, but needs the Grant to realise the assets to pay the IHT.

It’s taken out by the executor/personal representative and can solve the problem. The money is used to pay HMRC and it’s a way of meeting the IHT liability to unlock the estate with no risk or need to take out a personal loan/bridging loan.

Inheritance Advance (winner of Innovation of the Year, British Wills and Probate Awards 2020)

An Inheritance Advance allows beneficiaries to access a proportion of their inheritance sooner, with the Advance repaid out of the proceeds of their inheritance. This solves the problem of beneficiaries asking when they’ll be able to get their money and you having to explain that the process is complicated and lengthy.

Again, there’s no risk – if another Will emerges or assets take longer to sell or sell for less than anticipated, or another debt is discovered, we take the risk.

Inheritance Dispute Funding (IDF)

Inheritance Dispute Funding helps people who want to dispute a will but don’t have the money to fund the legal bills. We know that one in four people would dispute an inheritance if they felt it was unfairly distributed.

Contesting a will can cost up to £5k in upfront costs and there’s no guarantee your case will be taken on – with IDF the solicitor gives their opinion on the case and win or lose – we take the risk.

We pay the costs and then they’re repaid from the estate proceeds.

Estate Expense Funding (EEF)

Estate Expense Funding is for executors who face costs while they’re dealing with their responsibilities of administering an estate. These can be unexpected but we can help cover the costs until the inheritance is released

Executors could be liable for expenses such as funeral costs, professional fees, house and garden maintenance and more.

We pay the costs and then they’re repaid from the estate proceeds

Key Services

Key Contact

Richard (Dicky) Davies, Business Development Director
Tel: 07702 559051
Email: [email protected]
LinkedIn Acc: Dicky Davies
Facebook: Tower Street Finance
Instagram: Tower Street Finance


46 Tower Street
North Yorkshire