20 February 10
The Inheritance Tax Nil Rate band (the amount that can be given away on death without incurring Inheritance Tax - subject to lifetime gifts) is generally increased each year in line with inflation unless an alternative band is provided for. The Finance Act 2007 currently provides that the nil rate band will rise to £350,000 for individuals dying on or after 6th April 2010. It was however announced in the pre-budget report that legislation will be introduced in the Finance Bill 2010 to set the limit of Inheritance Tax Nil Rate band at £325,000 for the tax year 2010-11. The chancellor explained they were reducing the level from £350,000 due to the fall in property prices.
For more information on Wills & Probate and Inheritance Tax, contact Nia Wharry on Tel: 01256 320 555.
