Inheritance Tax

The new coalition Government has made a U-turn on its pledge to raise the inheritance tax threshold to £1m. Currently the inheritance tax threshold stands at £325,000, potentially allowing married couples to pass on £650,000 tax-free - called the nil rate band. The rules are complicated and allowances can depend on several factors, so you should seek specialist advice, and even if you have made arrangements in the past these should be reviewed regularly to make sure they are up to date with subsequent changesin the law. Any assets over the nil rate band attract a charge of 40%, which could amount to a substantial sum. The nil rate band is unlikely to change in the near future and with property prices on the rise many more will be subject to this tax. Eldridges can advise you how to take steps to minimise this tax bill, or even avoid it altogether in some cases. Please contact one of our advisors for further information:

Summary: 

The new coalition Government has made a U-turn on its pledge to raise the inheritance tax threshold to £1m. Currently the inheritance tax threshold stands at £325,000, potentially allowing married couples to pass on £650,000 tax-free.