Legal News | 14.11.24
Spreading IHT far and wide
Farmers have made their thoughts clear, but there are many outside the farming community who will also be increasingly dragged into the IHT net.
October’s Budget confirmed that the Inheritance Tax thresholds (Nil Rate Band (NRB) £325,000 and Residence Nil Rate Band (RNRB) £175,000) will remain the same until 2030.
The NRB threshold has remained the same since 2009 and so, with every passing year, more and more estates are dragged into the IHT net.
Added to this, other important changes introduced by the Budget will bring even more estates (further) into the IHT net:
- From April 2026, the rate of IHT relief available on AIM listed shares held for 2+ years will be reduced. Previously, full relief from IHT was available on such holdings but that is being halved, and so they will be subject to IHT at 20%.
- Also from April 2026, there are the much-discussed changes to agricultural and business relief. The 100% rate of IHT relief currently available will continue only for the first £1 million of combined agricultural and business but will be reduced to 50% thereafter.
- From April 2027 most unused pension funds and death benefits will be included in a deceased’s estate for IHT purposes.
Estate planning during your lifetime is more important than ever.
Wansbroughs can help you structure lifetime gifting and prepare your Will in the most tax efficient manner possible.
