View more on these topics

Inheritance tax

9.1 NIL-RATE BAND

The inheritance tax (IHT) nil-rate band has been increased from £250,000 to £255,000.
The increased threshold will apply to chargeable transfers occurring on or after 6 April 2003. The threshold is being increased by statutory indexation. It is estimated that 29,500 estates will be caught for inheritance tax in tax year 2003/04.

9.2 GENERAL PLANNING

Although no major changes to IHT have yet been made by this Government, complacency must be avoided. It would, therefore, be prudent to continue planning for the possible changes later in this Government&#39s term of office and so make maximum use of the current rules. Don&#39t forget that some six years ago the Labour Party publicly criticised the lack of bite in the inheritance tax regime.

In very brief terms the main advantages of the current inheritance tax regime are as follows:-

  • a nil-rate band of £255,000 with a flat rate of tax on death (40%) over that amount
  • the potentially exempt transfer rules
  • a 100% maximum level of business property relief and agricultural property relief
  • planning using deeds of variation
  • lump sum inheritance tax schemes that avoid the gift with reservation rules
  • advantageous rules for excluded property trusts.

All of these are areas that may well be targeted for harsher treatment under Labour in the future.

Recommended

Macho in Machu?

Artemis Fund Managers MD Dick Turpin, Societe Generale Unit Trusts chief executive John Ions and Quill director Gordon Puckey are all set to trek the Inca trail in Peru to raise money for leukaemia charity the Anthony Nolan Trust.The Diary would like to wish the trio the best of luck keeping up with the rest […]

Jordan leaving Skandia for Widows&#39 marketing role

Skandia head of product marketing Peter Jordan is leaving the company after 10 years to become marketing director at Scottish Widows.Jordan will report to marketing and distribution managing director Nathan Moss and will concentrate on product marketing to the IFA sector as well as Widows&#39 relationship with banks.Moss took over responsibility for marketing at Widows […]

Why stop at banks when societies are also to blame?

What an interesting letters section last week.First, concerning the letter headlined, Call banks to account, I totally agree with Julian Stevens&#39 comments but why stop at banks? Building societies, national and local, are only concerned in “selling” financial products and no regulator, going back to Nasdim (remember?) days has had the balls to address the […]

Newbigging appointed High Sheriff of Wiltshire

Friends Provident chairman David Newbigging has been named as High Sheriff of Wiltshire, a position appointed annually by the Queen.His responsibilities will include the support of four local charities – the Wiltshire and Swindon Community Foundation, Crimebeat, Wiltshire Wildlife Trust and Kennet Furniture Recycling – along with a number of ceremonial duties.Newbigging, who lives in […]

The Day of (B)reckoning

A period of exceptional uncertainty started last Friday for the UK, including a fierce leadership battle in a deeply divided Conservative party, the timing of the trigger of the EU’s Article 50, as well as a potential referendum in Scotland, and Northern Ireland. Click here to read the full article

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment