Tories pledge to cut Inheritance Tax
“The election of a Conservative Party with an overall majority is likely to lead to a more generous Inheritance Tax regime”, says Andrew Hasnip, Head of Private Client at The Wilkes Partnership.
The Conservative Party Manifesto promised to “take the family home out of Inheritance Tax for all but the richest by raising the effective threshold for married couples and civil partners to £1,000,000”.
We await specific details, but the indication from the Conservative Party Manifesto is that this would take the effect of adding a new transferrable main residence allowance of £175,000 per person, to the existing Nil Rate Band of £325,000. This will give an effective amount that can be passed on free of Inheritance Tax (including a main residence) of £500,000 per person. This, for a married couple, will equate to £1,000,000 that they can pass on free of Inheritance Tax but obviously is still some way short of the previously touted £1,000,000 per person that was heralded before the 2010 General Election.
By contrast the tax regime for trusts appears likely to tighten with the result of a consultation period on the taxation of trusts due in the autumn.
Overall there is still the need for professional Inheritance Tax advice to be taken so that clients can ensure that they have structured their affairs, to maximise the Inheritance Tax efficiency of passing these assets to their loved ones.
At the Wilkes Partnership, we have one of the leading Wills and Probate teams in the region, with nationally recognised, leading individuals in inheritance planning and trusts. For further information, contact Andrew Hasnip on 0121 233 4333.