Changes to Inheritance Tax rules are confirmed in July Budget - Royds Withy King Solicitors

Search our news, events & opinions

On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.

5 August 2015 0 Comments
Posted in Uncategorized

Changes to Inheritance Tax rules are confirmed in July Budget

Posted by ,

Last month’s Budget was described by many commentators as the most radical of modern times and among the many policies announced were a number of changes which will have major implications for estate planning. The Chancellor of the Exchequer told the …

Last month’s Budget was described by many commentators as the most radical of modern times and among the many policies announced were a number of changes which will have major implications for estate planning.

The Chancellor of the Exchequer told the House of Commons that he will be increasing the Inheritance Tax (IHT) threshold.

From 2017 there will be a new £100,00 allowance on homes left to children or grandchildren and this will be increased to £175,000 in 2020. This comes on top of the existing £325,000 threshold and both allowances will be able to be transferred to a person’s spouse or partner. As things stand, therefore, from 2020 couples whose assets include homes will have a combined nil rate band of £1m (this relief will be tapered downwards for joint estates worth in excess of £2m).

Mr Osborne had long wanted to reform IHT, but the proposals had been blocked by the Liberal Democrats during the Coalition.

With the Conservatives now commanding an overall majority, the Chancellor had the freedom to raise the threshold.

“Inheritance Tax was designed to be paid by the very rich,” he told MPs. “Yet today there are more families pulled into the  Inheritance Tax net than ever before – and the number is set to double over the next five years. It’s not fair and we will act.”

There was less welcome news for those with non-domicile tax status after Mr Osborne announced a far tougher set of rules.

Under the new regime, to take effect in two years’ time, wealthy foreigners who make Britain their permanent home will be forced to pay full tax on their foreign earnings.

In addition, Britons who currently qualify for the status because their father was born overseas will no longer be eligible for the tax break.

The changes are expected to raise around £1.5billion for the Treasury over the course of the next five years.

For more information on our private client services please visit or contact Tony Millson.

Leave a comment

Thank you for choosing to leave a comment. Please keep in mind that comments are moderated and please do not use a spammy keyword or a domain as your name or it will be deleted.

*

optional

Royds Import Individuals

Keeping you informed about Royds Import Individuals news, events and opinion.

Search our news, events & opinions