Budget 2015: IHT threshold unchanged, Deeds of Variation at Risk

Inheritance tax (IHT) threshold unchanged at £325,000. Many commentators had expected an increase in the Nil Rate Band, but this speculation was unfounded.

Deeds of Variations and Inheritance Tax (IHT)

Currently, a Deed of Variation can be used within 2 years of death to make use of IHT exemptions and reliefs to vary a will, with the aim of reducing the IHT burden on an estate. There will be a consultation on the use of Deeds of Variation with regard to IHT avoidance, due to report in Autumn 2015. Since this planning opportunity may be restricted in the coming months, it would be sensible to act now if this approach is being considered by an estate within 2 years of the death of a testator.

Please note, this article is for information only and does not constitute investment advice. Past performance is not necessarily an indication of future returns; the value of investments and any income from them is not guaranteed and can fall as well as rise; pension rules and tax legislation are subject to change; we do not give tax advice. If you would like investment or pension advice on your individual circumstances, please do not hesitate to get in touch on 01392 875500 or info@SeabrookClark.co.uk

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