A tax consultancy company, believe that Gordon Brown could use inheritance tax as a 'sweetener' in this year's budget. They expect the budget, which is due on 22nd March this year, to include increased IHT thresholds to help win votes. The company believe that if the nil-band was not raised, the Chancellor could choose to exempt main residences from IHT.
They expect that this year's budget will produce the final legislation for UK real estate investment trusts.
Our view
In the long term, we believe Inheritance tax may disappear altogether as the Government looks to reduce the numbers of people moving their assets out of the country into special offshore trusts.
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Learn about Inheritance Tax Planning in the Inheritance Adviser.com.