Budget 2013: Changes to the inheritance tax (IHT) nil-rate band are confirmed
The Government announced in the budget yesterday that the tax-free nil-rate band for IHT, which currently stands at £325,000 (£650,000 for married couples & civil partners), will be frozen until 2017/18. This supersedes their announcement in the Autumn Statement last year that increased the level to £329,000 in 2015/16.
In addition the Chancellor announced plans to further stamp down on IHT avoidance schemes. HMRC will change the existing treatment of liabilities, setting new rules on when deductions would be allowable or restricting the deduction altogether so as to avoid any possible tax advantage. This measure is in support of the government’s anti-avoidance strategy.
