New Inheritance Tax Threshold
Posted on 15th April 2017
So with last weeks budget, and house prices still soaring especially in the south of the country, what does the new IHT threshold offer?
The Office of Budget Responsibility says that the government will rake in near on £2 Billion in extra revenue over the next 5 years from Death Taxes. David Cameron had preciously said back in 2015, that they would take the family home out of ant tax equations, as we as hard working families should be able to pass our home on to our children free of any Inheritance Tax.
So What has happened?
The Most Hated Tax - Inheritance Tax - Death Duties, this is a tax that we have to pay should our Estate be over a certain level after our death, on our Estate that we have already paid tax on when we were living.
So with rising house prices and a boom in the stock market, the government have decided to overhaul taxes.
the standard rate for Inheritance tax is 40% which is applied to gifts and property over a set threshold (allowance), with the promise of this 40% rate being reduced and our family homes being able to be given tax free to our children, it seems this has now been thrown out of the window.
Tagged as: Estate Planning, Wills
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