At a time when the country is due to be hit with freezing temperatures it looks as though the government is set to announce that the Inheritance Tax (IHT) Nil Rate Band is to be frozen for years to come.
The current IHT threshold is £325,000. IHT is payable at a rate of 40% on the amount of a dead person's estate which is over the threshold and, therefore, is a serious concern for many families.
Legislation was due to increase the IHT threshold to £329,000 from the 2015-2016 tax year. However, it would now appear that the threshold is to be frozen at £325,000 until at least 2018.
Jon Gould, Associate in the Private Client team at DWF, comments: "The plan to freeze the IHT threshold is a set back to those families who are caught in the IHT net. It is widely reported that the government has stopped the increase to part fund the anticipated long-term care funding cap. Nevertheless, there are a number of ways an IHT liability can be reduced with the correct planning in place. Those individuals who are concerned about IHT should seek specialist legal advice sooner rather than later. The Private Client Team at DWF have significant expertise in IHT planning and regularly advise clients in this area. We are members of STEP (The Society of Trust and Estate Practitioners) and are focused on working with clients to find a solution that best suits their needs".