GOOD NEWS in the Chancellor’s Autumn Statement – no change to Inheritance Tax exemptions

GOOD NEWS in the Chancellor’s Autumn Statement – no change to Inheritance Tax exemptions

It was expected that the Chancellor would introduce new measures to alter or remove Inheritance Tax (IHT) exemptions and reliefs – as far as can be seen he hasn’t.  This is good news for those hundreds of thousands of families who will be caught by IHT in the next five years because of rising house prices.

We reported back in February the Government had announced that the IHT nil rate band would be frozen at the 2009 figure of £325,000 until at least 2019 in order to fund a Care Bills cap of £75,000 from 2017.  This meant many more estates would have to pay tax at 40%.

Since then the position has been compounded by house prices rising faster than the Treasury anticipated.  Prices are now forecast to rise by over 25% before the end of 2018.

For those with a potential liability it is never too soon to begin their estate planning.  Particularly for couples with joint property there are advantages in utilising their individual IHT exemptions sooner rather than later.  By moving property out of the joint estate at or before first death means that any capital appreciation, house price inflation for example, will not be subject to IHT.

Contact us to discuss your circumstances or for more information.

Speak Your Mind

*

How can we help?

Call us today on 01908 866541
or send us an email