Skip to Content

New Inheritance Tax Rules planned.


With the conservatives now in office it will not be long until the reforms they promised in their manifest become Law, one of the major headline grabbing promises was to review Inheritance Tax.

Inheritance tax is the tax liability payable to the government when a person dies leaving an estate in excess of £325,000 or when a couple or civil partnership it could be as much as £650,000, any amount in excess of this figure could be liable to 40% tax.

With property prices rising more and more, many estates have become liable to tax, but the logic behind this tax seems unfair, at best; why should people pay tax on savings, assets and investments that have already been liable to tax during the deceased's lifetime?

That being said I don't think the tax will be abolished any time soon, the tax free threshold of £325,000 was introduced six years ago, and is one of the most burdensome of any country, for example the exemption level in America stands at $5,500,000, the reason this is so high is that the tax is very costly to collect, so many countries just focus on the largest of estates.

The change, expected to be made by the new Government, is the introduction of an additional allowance of £175,000 for property per person (£350,000 joint relief); this will take the tax-free threshold to £1,000,000 per couple with property.

A word of caution however - the conservatives did mention five years ago that they would increase the threshold to a million, but they didn't.

If you are concerned about your Will I would recommend regular reviews to keep pace with changes to the law and your own circumstance.

Image Description
related news
recent articles
Probate Fees

Changes in probate fees.
From May 2017 probate fees are set to d..

link

Probate Fees

Changes in probate fees.
From May 2017 probate fees are set to dramatically increase.
The new fees are based on the size of the estate and are in addition to..

Transferring personal allowances.

Transferring personal allowances for Inheritance Tax - understand your rights on IHT planning...

Help to buy ISAs

Help to buy ISAs - The new, 'Help to buy', ISA is designed to help first time buyers save for a deposit for their first home, with the inducement of an extra 25..

Trusts Guide

Many people use a trust to reduce inheritance tax, if you put an..

link

Intestate

If someone has died intestate you may need a probate solicitor to help deal with the estate, this guide helps explain the steps needed...

Trusts Guide

Many people use a trust to reduce inheritance tax, if you put an asset into a trust you no longer own it, so depending on when you die your beneficiaries may no..

Diverted Profits Tax

Diverted Profits Tax - With effect from this April, foreign companies selling to customers in the UK will be liable for UK tax on profits...

Help to buy ISAs

Help to buy ISAs - The new, 'Help to buy', ISA is designed to hel..

link

Appointing a Solicitor

Guide to some of the factors people use when appointing a Solicitor...

Protecting your on-line memories

Protecting your on-line memories - In a recent survey over 2,000 people were asked what they think happens to digital images on Facebook if a user passes away,..

Tax Law Solicitors | Solicitors.com

Details of the services provided by Tax Law Solicitors...

Image Description
Is there anything wrong with this page? - any amendments will receive accreditation - email us

Solicitors.com are not a firm of solicitors, and any content on the site should not be used in substitute for obtaining Legal advice from a solicitor regulated in the UK, Solicitors.com recommends that you contact a firm of solicitors to discuss your individual legal requirement. Whilst we strive to bring you accurate up to date content, all content on this site is not legal advice and is not guaranteed to be correct. Use of this site does not create a client relationship.

Information by area of law
Back to top