The spending watchdog predicts that in five years, nearly twice as many families will have to pay inheritance tax.
The Office for Budget Responsibility believes that 6.5 per cent of estates will face the 40 per cent death tax burden by 2026 – up from 3.7 per cent last year.
It said it expects the Treasury to be drawing in £7.6billion a year by 2026, an increase on the £6billion this year.
According to the forecast, 41,400 families will be paying the tax each year by 2026.
It is widely believed that the rise in inflation and the escalating property prices are the main reasons why more estates have risen above the threshold for exemption from tax.
The Office for Budget Responsibility believes that 6.5 per cent of estates will face the 40 per cent death tax burden by 2026 – up from 3.7 per cent last year
Robert Salter of the accountancy firm Blick Rothenberg said it was a theft tax.
He said, “It’s a clever way to make more, but it’s painful and unfair on the bereaved.
The inheritance tax threshold has remained at £325,000 since 2009, and an additional £175,000 allowance for the family home will also stay frozen until 2026.
Any unused inheritance tax allowance can be passed to a spouse, meaning married couples and civil partners can leave an estate totalling £1million without their family having to pay up.