The inheritance tax (IHT) threshold has been frozen until at least April 2019 in order to fund reform of the social care system, the Government recently announced.
IHT is currently payable at a rate of 40% on the proportion of an estate worth in excess of £325,000.
Before the election, Chancellor George Osborne had pledged to increase the IHT threshold to £1m, and in the 2012 Autumn Statement he announced that the threshold would rise by 1% to £329,000 with effect from 2015/16.
However, Health Secretary Jeremy Hunt has now announced that the threshold will instead be frozen at £325,000 until at least 2019, with the additional revenue being used to cap bills for long-term care for the elderly at £75,000 from April 2017.
We can help with all of your IHT planning needs – please contact us for advice and assistance.