Legislation will be introduced in a future Finance Bill to provide for the Inheritance Tax (IHT) Nil Rate Band for 2015-16 to be increased to £329,000. The current threshold is £325,000. This overrides the indexation provided for in current legislation. The increase was announced in the 2012 Autumn Statement.
Jon Gould, Associate in the Private Client team at DWF, comments that "Whilst the increase in the IHT Nil Rate Band is a welcome step it is only a small increase. For many years the IHT Nil Rate Band has not kept pace with increases in property prices. As a result many individuals are caught in the IHT net purely because of the value of their property. As IHT is payable at a rate of 40% on the amount over the threshold it is a major concern for clients and their families. The Private Client team at DWF are experts in IHT planning and with the correct planning in place clients can reduce their IHT liability."
This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.