Wills & Trusts Department - Trusts

The Chancellor has announced new inheritance tax and capital gains tax rules. We immediately sought clarification from the tax man as the new rules are not quite as simple as the headlines make out.

Currently each individual is allowed to leave £300,000 without incurring IHT (this is known as the nil rate band). There has never been IHT on money or assets passing between a husband and wife. Tax planning up until now has relied upon the first of a married couple to die passing assets to the children rather than to the surviving spouse. Under the new rules if the first spouse to die did not use their nil rate band then this can pass to the surviving spouse leaving a situation where the surviving spouse could end up with a nil rate band of £600,000.

As ever the rules are more complicated than can be explained here, for example, if you have already carried out IHT planning then this may have to be reviewed in light of the new rules.

If you would like to talk to someone about the issues raised please telephone 01225 755621 and ask to speak to someone in the Wills and Trust Department.