Potential Changes to Inheritance Tax
It was announced at the Conservative Party conference earlier this month that changes to Inheritance Tax could be on the way.
Chancellor Sajid Javid announced that his first Budget “will include tax changes”. The Chancellor commented that he understood the arguments against Inheritance Tax, and had considered its abolition. Currently each individual has a tax-free threshold of £325,000, which can increase to £475,000 if the individual’s home is left to their children or grandchildren. If they are married or in a civil partnership, the thresholds can be combined to reach £950,000 without tax. Any amount above the threshold is taxed at 40%, although various reliefs are available to reduce the amount that is subject to the tax.
The Budget is expected to be announced shortly – for further information on current Inheritance Tax reliefs, please contact Sworders.