The Nil Rate Band (or threshold) for IHT has been frozen at £325,000 since 2009, and there are currently no plans to increase it until at least 2028. Between 2009 and 2023, the average UK house price increased by more than 80%.
None of us likes to dwell on morbid thoughts, but there’s never been a greater need to plan for IHT, as the IHT receipts for the Treasury continue to increase, and more and more families are caught by the IHT net. This IHT and probate focused briefing highlights planning principles and opportunities for you to consider. This is of course an interesting time for IHT, with recent press reports suggesting that the Government may reduce the rate in the March 2024 Budget and include the plan to abolish IHT at some future date in its 2024 election manifesto. There is no certainty at this time: we recommend that you continue to plan for IHT but retain some flexibility until we can be sure any changes and any ‘replacement’ taxes.
Our IHT and probate specialists are available to assist with your estate planning, provide you with bespoke solutions to minimise your potential IHT exposure, and to ease the administrative burdens on death by dealing with the grant of probate. Please do not hesitate to contact me or any of the Private Client team, if we can assist you in any way.
Download the Private Client Inheritance Tax Probate Briefing below.