Written by Amelia Beringer, John FitzGerald
The government’s reforms to the inheritance tax (IHT) regime announced earlier this year, with the introduction of a new main residence nil-rate band, have once again put IHT under the spotlight. At the same time, recent figures show revenue derived from IHT to be at a five-year high.
While the latest reforms could help ease the tax burden of many estates, sensible estate planning should still be encouraged at an early stage, especially as this new relief will taper away. For net estates over £2m the residence nil-rate band will be withdrawn at a rate of £1 for every £2 over the threshold.
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