Unfortunately, no changes from the Chancellor's November pre budget speech. Inheritance Tax Threshold increases from £250,000 to £255,000. This is an increase of 2% (this is below inflation) and means a potential additional inheritance tax saving of up to £2,000 per person. In our opinion, this is yet another stealthy way to raise more money as peoples assets are increasing at a faster rate. What does that mean?
Our view:
Most peoples homes have increased in value by well over 15% in the last year, let alone previous years. This means that many more have wealth now above the nil rate tax threshold. The result is more people are breaching the inheritance tax nil rate threshold and will pay inheritance tax on death, once thought the domain of the wealthy. Result - the treasury collect more tax at a rate of 40%! Care should be taken and advice sought now as there is speculation of other changes to Inheritance tax rules before the actual budget in March that may close some attractive 'loopholes'.To learn more about how to save on Inheritance Tax visit the Inheritance Adviser.com. Why not try our Inheritance Tax Calculator to see how much you would have to pay?