No Changes to IHT Exemptions in the Autumn Statement

Carl Islam, of Averose Chancery Chambers, said, "Tens of thousands of families could be caught by inheritance tax in the next five years as the threshold fails to keep pace with rising house prices".

The suggestion is that the amount of "estates" affected by Inheritance Tax is set to increase from 21,000 in 2012 to 42,000 in 2016/17. The amount of the expected increase is significantly above the previous peak of 34,000 in 2006/07.

Inheritance Tax "allowances" were frozen at £325,000 in April 2011 and will remain the same until April 2018.

Currently property prices are rising faster than the Treasury expected with the expectation that prices will increase by 25.2% by 2018. Mr Osborne's frozen rate will affect 176,000 estates in that period. 

Questions were asked of John Whiting, Director of the Office of Tax Simplification, at a conference in London last month, whether the existing Inheritance tax exemptions and relief's are stable.

His replies suggest that politicians do not want to tamper with IHT before the next election (7 May 2015). 

From a practical perspective lawful mitigation of Inheritance Tax is by definition neither illegal nor immoral. It forms a sensible part of estate planning for those likely to incur IHT.

If you would like to discuss any of the points raised above or would simply like to discuss matters with an experienced solicitor please call our team on 0161 720 7200, email us via enq@rosslegal.co.uk or complete the form on the right and we'll call you back.

Ross Legal LLP

Inheritance Tax Advisers

Salford, Manchester, National 

Tel; 0161 720 7200