Rates and threshold
The nil rate band for transfers after 5 April 2010 was intended to rise from £325,000 to £350,000, as announced in 2007. In the Pre-Budget Report Mr Darling decided that the threshold would be held at £325,000 for the next year. Now he has announced that this limit will apply up to and including 2014/15, bringing more states into the charge to tax, year by year, if property values increase.
Rates of tax remain unchanged at 40% (death transfers) and 20% (lifetime chargeable transfers).
| Tax Trap |
| IHT will be a problem for more people – plan sooner rather than later. |
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