Booming house prices have put hundreds of thousands more homeowners into the inheritance tax bracket, figures show today.

Halifax Financial Services said the estates of an estimated 2.4 million people were now liable for the 40 per cent tax when they die.

The total soared by almost 500,000 during the first six months of 2004.

It said the steep increase was due to the fact that house price growth of 12 per cent during the period had "significantly outstripped" the 3.1 per cent rise in the inheritance tax threshold to £263,000 which came into force this April.

Monday July 19, 2004