The Budget 2017

RJMS Health Care Accountants COVID-19 summary of government offers & business support guide.

Click underlined for more details.


Inheritance Tax

Rates

The IHT nil rate band was increased to £325,000 on 6 April 2009, and previous Budgets had fixed it at that level until the end of 2020/21. This Budget has further fixed it until the end of 2025/26. Holding the threshold at the same amount for 17 years will bring far more people into the scope of the tax. However, the introduction of the ‘residential nil rate band enhancement’ on death transfers can reduce the impact where it applies. From 6 April 2020, a married couple are able to leave up to £1 million free of IHT to their direct descendants (£325,000 plus £175,000 from each parent), but the rules are complicated, and the prospect of the nil rate band being fixed for the next 5 years increases the importance of proper IHT planning.