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Autumn Statement: Gov't raises IHT nil rate band to £329k

by William Robins on Dec 05, 2012 at 13:40

Autumn Statement: Gov't raises IHT nil rate band to £329k

The inheritance tax (IHT) nil rate band will increase by 1% in 2015-16 to £329,000, the government has announced.

The IHT nil rate band has been frozen since 2009 at £325,000. The government said the measure would raise an extra £35 million by 2017-18.

The threshold was frozen in the 2010 Budget until 2014-15. If the estate is more than the threshold, IHT is charged at 40% on the amount over the nil rate band.

From April 2012 anyone who leaves over 10% of their estate to charity can choose to pay a reduced rate of 36%.

5 comments so far. Why not have your say?

Phil Castle

Dec 05, 2012 at 14:46

Pointless....

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Graham Burgin

Dec 05, 2012 at 15:19

Its a worry that the chancellor thinks 1% of £325,000 is £4,000!!!!

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Man of Kent

Dec 05, 2012 at 15:58

Hurrah! My children are saved.

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Lyndon Edwards

Dec 05, 2012 at 18:35

Why would anyone choose NOT to pay a reduced rate of 36%????

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Market Man

Dec 06, 2012 at 08:26

At least we all know where we stand and can forget about the Govt taking clients out of the net with a £1m NRB as previous speculation has suggested might happen. Off to find a BPR-based investement solution to give my clients a 100% exemption..

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