News & Publications - Private Client

The Chancellor announced today in the Pre-Budget Report that the Inheritance Tax threshold will remain unchanged for 2010/2011. The threshold, which is currently set at £325,000, had been due to rise to £350,000 in April 2010.

 

Whilst the introduction of the transferrable Nil-Rate Band two years ago has meant that there has been in increased threshold for couples, it is important to keep in mind that, as property values increase, a tax-free threshold of £325,000 can still result in there being a significant tax liability in many estates.

 

Please bear in mind that there are still opportunities to make lifetime gifts, which in some cases will not suffer an inheritance tax charge. However, although the Chancellor has not made some of the changes that were suggested before the Pre-Budget Report, he has another opportunity with the Budget next March.

 

If you would like to discuss any of the options which might be available for lifetime Inheritance Tax planning, please do not hesitate to contact our Private Client department on 0207 544 2424.