The 2010 budget, announced by Alistair Darling yesterday, has frozen the 'nil rate band' for inheritance tax at the preset threshold of £325,000 for the next four years. This means that the value of any estate on death exceeding £325,00, subject to any applicable exemptions or increases, will be taxed at 40%.
With the hope that property prices and the economy generally
will return to strong recovery and growth over the coming months
and years, this news may mean that more estates are liable to pay
inheritance tax, reducing the funds people can pass to their chosen
beneficiaries.
Although death and taxes may be certainties of life, there are
steps that can be taken to ensure that you, your estate and your
beneficiaries do not have to pay more inheritance tax than
necessary through appropriate lifetime tax and estate planning
advice and Wills.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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