Has the Budget Affected Your Inheritance Tax Planning?
In the 2013 Budget of this week, Chancellor George Osborne announced a freeze on the Inheritance Tax threshold until 2017/2018, when it is intended it will be increased, but only to £329,000.00 per person.
The current threshold is set at £325,000.00 per person, or a joint allowance of £650,000.00 for married or civil partnership couples. Inheritance tax is then charged at 40% on any part of your estate exceeding the allowance.
At the 2007 Conservative Party Conference the then Shadow Chancellor George Osborne had announced that “the next Conservative Government will raise the inheritance tax threshold to £1 million. That means, we will take the family home out of inheritance tax”.
Economic performance has clearly not lived up to the 2007 aspirations and, unsurprisingly, the planned threshold increase is no longer affordable.
You may have been anticipating an increase in the threshold and may be wondering what you should do now that it has not materialised. If you wish to discuss how this freeze may affect you and your family and want advice on financial matters and how to try to minimise any inheritance tax on your assets as far as possible, please contact us.