Inheritance tax overlooked in Autumn Statement

Despite much speculation that the Autumn Statement would announce significant reforms to inheritance tax (IHT), the Chancellor of the Exchequer did not present any reforms in his presentation to parliament.

In the current tax year (2023/24) no inheritance tax is due on the first £325,000 of an estate, with 40% normally charged on any amount above that.  If your estate passes to your spouse, civil partner or to charity then there will not generally be any inheritance tax to pay when you die.

If you give your home to your children or grandchildren, then your tax-free threshold can increase to £500,000.

If you leave your estate to your spouse outright when you die, on their eventual death their estate should benefit from their own tax-free thresholds (up to £500,000) and they may also be entitled to transferable thresholds from your estate (again up to £500,000).

It is very important that Wills are structured correctly to gain the benefit of all the allowances you may be entitled to.  It is also vital to take advice when someone dies to ensure that an estate is gaining the benefit of all the allowances it is entitled to.

For any queries about making a Will, or advice about inheritance tax, please contact us.

Lindsey Ottywill is a solicitor in the private client team at Barker Gotelee, Solicitors in Ipswich.

Wills Solicitors Ipswich – click here for more information on our range of services.