Tories hint at inheritance tax reform

Chancellor George Osborne has hinted that the Conservative party intends to reform the rules on inheritance tax, which could result in far fewer people being affected by the death levy.

This follows previous comments from Prime Minister David Cameron, who argued that the tax should only be imposed on "the rich".

The link between property prices and inheritance tax is one which has remained unchanged for many years, with many critics arguing that the rules are outdated and no longer fit for purpose.

As a tax paid on a person's death estate, including their property, money, possessions and assets, it was originally designed to target only the nation's richest, when they made gifts or left an inheritance.

However, the levy has become increasingly unpopular in recent years, due to steadily increasing property prices, particularly in the South East.

Currently set at £325,000 per person – with an effective £650,000 joint allowance for married couples – the tax-free threshold is now often consumed by even a modest family home. A tax of 40 per cent is then levied on any assets or funds that fall outside the threshold allowance.

If you have any questions about how inheritance tax might affect you, our team of experts are ready to help. You can speak to us on 0161 928 5558, or send an email to fottavianelli@collings-solicitors.co.uk and we will get back to you as soon as possible.

Collings

Cheshire Inheritance Tax Solicitors