The Chancellor announced in today’s Autumn Statement that he has frozen the Inheritance Tax (IHT) nil rate band until 2028, extending the freeze that was already set to last until 2026.
The current threshold of £325,000 was set in 2009 and now won’t be increased for at least 19 years.
Compounded by the soaring property market of recent years thousands of people will now find their estate being taxed at 40% when they die.
Industry calculations estimate that this additional two year freeze could raise an extra £1 billion for the Revenue.
IHT receipts for April 2022 to September 2022 were £3.5 billion, £400 million higher than in the same period a year earlier.
It is now more important than ever for people to consider their tax affairs more carefully and plan accordingly. This freeze means that IHT is no longer a tax on only those with a ‘high net worth’, as many families will now be unexpectedly affected too.
If you are concerned what this means for you and would like to review your tax position and consider estate planning, then please contact us and we will be happy to assist.