Tim Palmer looks at the current inheritance tax climate, problem areas and some of the planning opportunities available.
Inheritance tax (IHT) is a very expensive tax. Unfortunately, based on my experience in practice, it is the tax that many clients simply ignore and do not carry out the necessary planning for.
£1 million – free of IHT?
In 2015, the then Chancellor, George Osborne, issued his ‘£1 million inheritance tax (IHT) free’ statement. In very general terms, he was looking at a married couple with children and a family home. On the death of the first spouse, they would leave their estate to their surviving spouse. This would include their assets, investments and probably their half-share of the family home. In terms of IHT exemptions, the first deceased spouse’s nil rate band of £325,000 and the residence nil rate band (RNRB) of
